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FIDELITY WEIGHS BITCOIN TRADING ON BROKERAGE PLATFORM


THE FIRM HAS MORE THAN 34 MILLION BROKERAGE ACCOUNTS

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FIDELITY MADE AN EARLIER MOVE INTO BITCOIN WHEN IT LAUNCHED A TRADING BUSINESS
DEVOTED TO THE CRYPTOCURRENCY.

Photo: Nina Westervelt for The Wall Street Journal
By
Justin Baer
Sept. 12, 2022 2:51 pm ET

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Fidelity Investments is weighing a plan to allow individual investors to trade
bitcoin on its brokerage platform, people familiar with the matter said, marking
the financial giant’s latest foray into cryptocurrencies. 

Fidelity launched a bitcoin-trading business for hedge funds and other
institutional investors in 2018, and earlier this year allowed corporate clients
to add the digital asset to the 401(k) retirement plans it manages for them.
Now, the Boston firm is working toward bringing crypto to its more than 34.4
million brokerage accounts, the people said. 

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Led by its chief executive, Abigail Johnson, Fidelity was among the first
mainstream financial firms to champion digital assets and the technology that
underpins them. Ms. Johnson began holding weekly crypto discussions with her
lieutenants nearly a decade ago, and in 2015 Fidelity started mining bitcoin.
Later, it added a link on retail customers’ accounts to Coinbase, the crypto
exchange, to track their holdings. In 2020, it opened its own crypto fund for
wealthy customers. 

When Fidelity opened its 401(k) accounts to bitcoin, industry executives came to
believe it was only a matter of time before the firm moved to allow brokerage
customers to hold crypto in their accounts. Some of its competitors, including
Robinhood Markets Inc., have used access to digital assets as a key selling
point for a new generation of investors who had started trading everything from
stocks and options to bitcoin in 2020. 



On Monday, Mike Novogratz, Galaxy Holdings Ltd.’s CEO and one of Fidelity’s
first crypto clients, signaled Fidelity would soon join them. 

“A bird told me that Fidelity, a little bird in my ear, is going to shift their
retail customers into crypto soon enough,” Mr. Novogratz said during a speech at
the SALT Conference. “I hope that bird is right. And so we are seeing this
institutional march.”

Fidelity hasn’t shared its plans with its clients yet.

Anything Fidelity does to expand crypto’s reach to individual investors is
likely to draw scrutiny from Washington. The U.S. Department of Labor has said
it was concerned about companies’ decisions to allow its employees to invest in
cryptocurrencies through their Fidelity retirement plans. Several U.S. senators
have also raised questions about the plan, citing the risks inherent investing
savings in such risky assets. 

Crypto Crashed, Coinbase’s Stock Followed: What Went Wrong
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Crypto Crashed, Coinbase’s Stock Followed: What Went WrongPlay video: Crypto
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Coinbase went public with a highly anticipated listing in 2021, but as the
crypto market crashed, the company’s share price dropped by more than 80%. Now
it’s working to diversify its revenue. WSJ’s Paul Vigna explains what went
wrong. Illustration: Jacob Reynolds

—Vicky Ge Huang contributed to this article.

Write to Justin Baer at justin.baer@wsj.com

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved.
87990cbe856818d5eddac44c7b1cdeb8




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