Fidelity Investments, through its subsidiary Fidelity Digital Assets, has introduced individual retirement accounts (IRAs) that allow private investors to invest in cryptocurrencies.
Fidelity's Cryptocurrency IRAs
According to the company's website, investors can add virtual assets to their retirement portfolio through Fidelity Crypto for IRAs. Currently, only Bitcoin, Ethereum, and Litecoin are available. There are three types of account registrations for IRAs: Fidelity Crypto Rollover IRA, Fidelity Crypto Traditional IRA, and Fidelity Crypto Roth IRA. Access to these accounts is restricted, requiring investors to be U.S. citizens and at least 18 years old. A Fidelity representative stated that the firm is committed to offering investment products and solutions to respond to its customers’ ever-evolving needs and interests.
Race to the Stablecoin Market
Fidelity Investments is also reviewing the tokenized U.S. Treasury market and testing its own stablecoin since March. This move commenced after Fidelity filed a request to launch a tokenized version of its U.S. dollar money market fund. Sources reported that Fidelity Digital Assets is testing a stablecoin they developed, although there are no current plans to launch it.
Competition in the Stablecoin Market
Cryptocurrency custodian BitGo introduced its USDS stablecoin in January, and the World Liberty Financial project announced the launch of a USD1 stablecoin on March 25. Stablecoins have seen increased usage and expansion among cryptocurrency owners since their introduction in 2014. Companies, including Fidelity, are trying to enter the space while waiting for lawmakers to establish clear rules for stablecoin issuers.
Fidelity Investments' focus on cryptocurrencies and its aim to enter the stablecoin market highlight the company's strategic approach to changing financial trends and client demands.
