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Fidelity allowed to handle Bitcoin in Canada

Updated: Aug 23, 2024
Published: Nov 17, 2021
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Fidelity Clearing Canada ULC has received approval from regulators to become the first custodian of bitcoin in the country.

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Institutional clients will be able to invest in Bitcoin

On Wednesday, Fidelity received approval from the Investment Industry Regulatory Organization of Canada (IIROC) to offer a new service for digital assets. The custody and trading platform is not intended for retail investors who can access Bitcoin directly but for institutional investors who want to invest in cryptocurrencies, including pension funds, portfolio managers, mutual funds, and exchange-traded funds.

Fidelity Clearing Canada provides services to more than 100 investment companies in Canada. Together with Fidelity Investments Canada ULC, they represent more than $222 billion in assets under management as of June 30. Earlier this week, Fidelity Investments Canada ULC filed a preliminary prospectus with regulators to launch a bitcoin ETF and a bitcoin fund.

Fidelity was one of the first major firms to get involved with crypto

The launch of the new digital currency trading and custody platform comes eight months after Canadian securities regulators and IIROC issued guidance on cryptocurrency trading, prompting Fidelity to extend support to the Canadian investment community, the president of Fidelity Clearing Canada  said.

Fidelity was one of the first major firms to get involved with cryptocurrencies and established a cryptocurrency-focused subsidiary in 2018. Later it launched a crypto custody solution in 2019. Mr. Mackenzie says the company's U.S launch gave Fidelity Canada a four-year runway to set up services in the cryptocurrency market quickly.

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