Fidelity launches digital asset collateral service with BlockFi

Fidelity Digital Assets, a subsidiary of Fidelity Investments, has launched a new service that enables clients on Fidelity’s institutional-grade digital assets custody platform to pledge bitcoin as collateral in a transaction. The new capability marks Fidelity’s entrance into the digital asset financing space, strengthening and broadening Fidelity Digital Assets’ existing custody offering, which is integrated with a trade execution venue for client liquidity needs. In conjunction with the launch of the collateral agent capability, BlockFi, a cryptocurrency lending platform and a CME bitcoin futures block liquidity provider, will begin to offer its institutional clients the option to custody bitcoin pledged as collateral in their cash loans on Fidelity’s platform.