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Fidelity Digital Assets Boosts Liquidity by onboarding ErisX

Fidelity Digital Assets’ customers to benefit from ErisX’s spot market

Fidelity Digital Assets has boosted its crypto trading product, tapping the ErisX exchange to improve its liquidity.

The two platforms confirmed the move on Thursday, with Fidelity Digital Assets tweeting that the collaboration expands access to digital assets.

“Our trading capabilities and breadth of liquidity continue to evolve. We are delighted to advance our relationship with ErisX to offer our institutional clients more liquidity”

With this relationship, FDA customers can now benefit from ErisX’s spot market. The alliance allows for cross-client trades as well as storage of bitcoin on other liquidity providers.

According to FDA head of product Terrence Dempsey, onboarding ErisX allows Fidelity to route its buy and sell orders to the exchange’s marketplace. Consequently, ErisX becomes the first exchange that Fidelity Digital Assets has onboarded.

ErisX CEO Thomas Chippas lauded the development saying that it validated all their efforts to bring institutional intermediaries like FDA into its market. Chippas added that they believe in the philosophy of making crypto accessible to everyone.

ErisX is also targeting other major players in the space to join its clearinghouse. Firms reportedly in the mix include TDAmeritrade, TradeStation and Wedbush Securities.

Fidelity targeting more institutional clients

Although Fidelity’s crypto product has worked primarily with over-the-counter (OTC) desks, onboarding ErisX provides for more than just access to a better liquidity pool for existing clients. The resultant access to a transparent market is also key to the firm’s push to attract more institutional clients.

Fidelity, with over $8 trillion in total customer assets, has in the last few years looked to attract more investment into crypto business. As well as courting big-money investors, the company invests in crypto businesses as was its input into ErisX in 2018.

It’s notable that the FDA/ErisX move comes at a time the institutional investor space in crypto is reportedly seeing increased activity.

Boston-based Fidelity has reported an uptick in its crypto business over the past few weeks, even as the coronavirus pandemic continued to wreak havoc in traditional markets. According to the firm, significant momentum has come from investors in pension funds, family offices, and hedge funds.

Bitcoin (BTC) remains the most popular crypto among institutional investors.

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