Fidelity Digital Assets announced its digital asset custody platform will take bitcoin pledged as collateral in a transaction. 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 customers the option to custody bitcoin pledged as collateral in their cash loans on Fidelity’s platform.
“We continue to see demand for increased capital efficiency from institutions that maintain long bitcoin positions, and with this collateral agent capability, our customers seeking that efficiency can access more opportunity with the capital that they trust us to keep safe,” said Christine Sandler, head of Sales and Marketing for Fidelity Digital Assets, in a statement.
Zac Prince, CEO and founder of BlockFi, said in a statement: “Having an ability to finance positions is a critical component of financial services infrastructure and this collaboration reflects an exciting development for the digital asset ecosystem.”
According to Fidelity’s research, there has been increased institutional appeal in and adoption of digital assets, with 36% of institutions surveyed invested in the asset class and more than 6 in 10 investors highlighting digital assets have a place in portfolios.