Is Fidelity The Saving Grace For Crypto Firms Now?

Ramsha Naushad

March 15, 2023

A rising number of companies in the digital-asset sector are reaching out to asset managers such as Fidelity Investments to invest their cash in products like Treasuries.

Following the recent collapse of several crypto-friendly US banks, digital firms are left to struggle to find new banking partners in the United States.

Silvergate Capital, a go-to bank for crypto companies, venture capital-focused Silicon Valley Bank, and Signature Bank, another bank known for its ties with crypto are down.

Mr Justin Bram, CEO of crypto start-up Astaria, said to Bloomberg that he received numerous messages after he offered to make introductory calls to Boston-based Fidelity in a private group chat on Telegram last week. 

“I’ve referred probably 25 companies and funds their way in the last three days,” Mr Bram said.

Fidelity offers start-ups like his a brokerage account, which gives them opportunities to invest in products like Treasuries. 

“Fidelity isn’t a traditional bank, but they’re certainly safer than the tier-two-and-beyond banks,” Mr Bram added.