Fidelity Launches First Institutional Bitcoin Solution After Receiving Canadian Approval
- Fidelity is the first solution for the custody and trading of bitcoin in the country, and is already available to institutional investors.
- Due to the high demand for services from investors, Fidelity has already introduced other products for mutual funds and ETFs as well.
- In the future the company hopes to launch products for retail customers.
Canada’s financial regulator has approved the launch of the first institutional digital asset service in the country by Fidelity Clearing Canada (FCC). As a result, Fidelity has become the first Bitcoin trading and custody platform specifically designed for institutions.
Having received authorization from the Investment Industry Regulatory Organization of Canada (IIROC), the new service will be fully focused on cryptocurrency operations.
The approval came after the company reported considerable growth in the demand for digital assets from Canadian investors.
The Canadian government had laid the groundwork for this move months prior when it authorized the operations of a set of Bitcoin ETFs. The country has been receptive to the crypto industry since migrating bitcoin miners from China and other countries chose Canada as their new hub.
Fidelity Investments said in a statement that the country will have its first IIROC. For now, the new digital asset custody and trading service product will only be available to institutional investors.
Subsequently, the company hopes to be able to expand its services to retail clients, once it is authorized to operate bitcoin-oriented mutual funds, as well as negotiable funds on the Canadian stock exchange.
“Leveraging this new platform, Fidelity Investments Canada ULC presented preliminary prospects for the Fidelity Advantage Bitcoin ETF and the Fidelity Advantage Bitcoin ETF Fund,”
the statement said.
The launch of FCC comes at a time when the cryptocurrency market is growing incessantly around the globe, and Canadian institutions are very interested in acquiring these types of assets, the company highlighted.
According to the president of Fidelity, Scott MacKenzie, Canadian institutional investors “have been looking for a regulated dealer platform to access this asset class” for some time, which facilitated the launch of the new project.
MacKenzie added that:
“Fidelity Clearing Canada is pleased to offer our new solution, leveraging Fidelity’s global experience and deep knowledge of digital assets for leading Canadian institutional investors.”
Those interested in using FCC’s cryptocurrency custody and trading services can now do so as the solution has already been activated for portfolio managers and distributors, mutual funds, ETFs, and other qualified institutional investors, according to the operator.
On The Flipside
- A study conducted by the firm recently determined that around 70% of Canadian institutional investors are considering acquiring digital assets in the coming months.
Why You Should Care?
- The platform has stood out as one of the leaders of the adoption of cryptocurrencies since 2020, not only in Canada, but in the U.S. and Europe as well, where it has launched various investment products.
- Fidelity Clearing Canada, is a subsidiary company of Fidelity Investments, the American mutual funds giant.
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Poloniex rolled back support for stablecoins on Binance Smart Chain (BNB Chain)
Crypto exchange Poloniex (one of the key investors of which is the creator of the ecosystem TRON Justin Sun) stopped supporting stablecoins on Binance Smart Chain (today – BNB Chain). Poloniex tech support announced this in a tweet.
Tech support later deleted the tweet, but it is still viewable on the websites that linked to it. When trying to open an announcement about the termination of support for Binance Smart Chain stablecoin, the exchange’s website takes you to an authorization form.
According to the saved copy of the announcement, the exchange stopped supporting USDT, USDC, TUSD and BUSD based on the BEP20 protocol back on November 24. However, support for other BNB Chain-based tokens remained in place.
The exchange said that it stops not only deposits but also withdrawals of stablecoins on BEP20, but is ready to convert assets to their counterpart on other networks: Ethereum (ERC20) or TRON (TRC20). It is not clear what exactly caused the change. At the same time, Poloniex representatives on Telegram ignore users’ questions about the reasons for stablecoin support stopping on BEP20, but note that users can still deposit tokens on BEP20.
Earlier, we reported that MakerDAO will exclude renBTC from DAI stablecoin reserves due to the drop in renBTC price.
Binance Launches Proof-of-Reserves System
Binance has released a Proof-of-Reserves system based on Merkle Tree, an algorithm for verifying crypto exchange reserves. The Proof-of-Reserves system proves that the company holds user funds in full. When a user deposits one bitcoin, the exchange’s reserves increase by one bitcoin in real time, proving the transparency of balances and the safety of funds.
The first version of Proof-of-Reserves is available for bitcoin (BTC). Similar functionality will soon be available for ETH, USDT, USDC, BUSD and BNB. Binance will also bring in an independent third-party auditor to verify the data.
“Given recent events, it is clear that the community will demand more from crypto exchanges than what is currently required of traditional financial institutions. That’s why we are excited to provide our users with this newest feature to verify crypto exchange reserves,” said Binance CEO Changpeng Zhao.
He added that Binance’s community is larger than that of any other crypto exchange. Therefore, it will take several weeks to get data for most assets.
“We are working to get the next update out as quickly as possible. As much as possible to meet community expectations,” Zhao noted.
Right now, users can check funds in two ways: through the Binance website or by copying the source code into a Python application and cross-referencing.
Also, the ZK-SNARK tool will soon be introduced, providing privacy and simplicity for confirming reserves. The service will help audit users’ balances and confirm that they have assets to cover collateral.
Earlier, we reported that New York City restricted the cryptocurrency mining business.
Polkadot offers money for fighting crypto fraudsters
Blockchain project Polkadot has launched Anti-Scam Bounty, an anti-crypto fraudsters program to improve the security of its ecosystem. As part of the new program, Polkadot will pay users cash rewards for helping them fight crypto fraudsters.
Users are required to find fraudulent websites, fake social media profiles and phishing apps that masquerade as Polkadot. They also need to protect Discord servers from hacker attacks. The tasks include creating training materials for users, as well as developing a special Anti-Scam toolbar to protect against fraud in the company’s ecosystem.
“Decentralizing anti-cryptocurrency scammer list efforts and moving them online is no easy task, mainly because most of the anti-scamming happens in Web2,” Polkadot said in a statement.
Each task is overseen by members of the Polkadot community. They will interact with implementers and suggest their own initiatives to better achieve results. Users will receive USD Coin (USDC) awards for helping to fight fraud. The program is now run by three mentors from the Polkadot community and two employees from the Web3 Foundation.
“The threat to Polkadot’s brand development is real, but that’s not our only concern. We don’t want Polkadot to be a free ecosystem. We want it to be a secure ecosystem where users don’t have to constantly worry about getting caught and scammers should think twice before casting their nets,” Polkadot said.
Polkadot concluded by reaching out to scammers, promising that they will have a tough time in the ecosystem.
“So pack your bags and go for it. Or better yet, get a job and stop stealing from people!” the authors of the release concluded.
We previously reported on why the collapse of FTX won’t kill the crypto industry.
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