In a landmark move for the Canadian digital asset landscape, Fidelity Clearing Canada—a subsidiary of the global financial giant Fidelity Investments—has received regulatory approval to launch a Bitcoin trading and custody platform designed specifically for institutional investors.
This initiative, approved by the Canadian Investment Regulatory Organization (CIRO), marks the first service of its kind in Canada, catering to pension funds, portfolio managers, mutual funds, and other institutional entities.
A New Era for Institutional Bitcoin Access
Fidelity’s newly approved platform will provide institutional-grade Bitcoin custody and trading services. This fills a critical gap in the Canadian market, where large investors have previously had to rely on U.S.-based custodians or less regulated alternatives.
Scott Mackenzie, President of Fidelity Clearing Canada, highlighted the growing demand for digital asset exposure:
“Investor interest in digital assets is expanding significantly. Institutional investors have been actively searching for a regulated dealer platform to access this asset class.”
This service is part of Fidelity’s broader strategy to serve both institutional and retail markets. Earlier this week, the firm also filed applications to regulatory authorities to launch Bitcoin-focused exchange-traded funds (ETFs) and mutual funds aimed at retail investors.
Canada’s Complex History with Crypto
Canada’s journey toward cryptocurrency adoption has seen both innovation and setbacks. One of the most significant events was the collapse of QuadrigaCX, once the country’s largest crypto exchange.
After the sudden death of its co-founder Gerald Cotten in 2018, the exchange became insolvent. It was revealed that Cotten alone had access to the private keys of cold wallets holding approximately $143 million in customer funds. More than 115,000 users were affected.
This incident underscored the need for regulated, secure, and professionally managed digital asset services—a need that Fidelity’s new platform aims to address.
Why Fidelity’s Entry Matters
Fidelity is no newcomer to digital assets. The firm established a dedicated crypto subsidiary back in 2018 and launched a cryptocurrency custody solution in 2019, which CEO Abigail Johnson later described as “highly successful.”
Today, Fidelity Investments manages over $4.2 trillion in assets globally. Its Canadian division, Fidelity Clearing Canada, serves more than 100 investment firms and, together with Fidelity Investments Canada ULC, oversees more than $222 billion in assets under management (as of June 30).
The introduction of a regulated custodian in Canada is expected to:
- Increase confidence among major investors.
- Pave the way for more crypto-based financial products.
- Reduce dependency on foreign custody providers.
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Growing Interest in Crypto Investment Products
Fidelity’s move aligns with a broader trend of rising institutional interest in digital assets. According to a 2021 study by Fidelity Digital Assets:
- 84% of institutional investors in the U.S. and Europe expressed interest in investment products that hold digital assets.
- U.S. investors in particular showed a strong preference for accessing crypto through traditional financial firms rather than unregulated platforms.
Globally, the number of crypto ETFs and similar exchange-traded products continues to grow. In the U.S. alone, over 40 Bitcoin ETF applications are currently awaiting regulatory approval.
Frequently Asked Questions
What services is Fidelity offering in Canada?
Fidelity Clearing Canada has received approval to operate a Bitcoin trading and custody platform tailored for institutional clients such as pension funds, mutual funds, and asset managers.
How does this benefit institutional investors?
This provides a regulated and secure way for large-scale investors to gain exposure to Bitcoin without relying on offshore or less-regulated custodians.
Is Fidelity also serving retail investors?
Yes. Through separate regulatory filings, Fidelity has proposed Bitcoin-focused ETFs and mutual funds aimed at retail investors.
Why is regulatory approval important?
Approval from CIRO signals that the platform meets strict regulatory standards, reducing counterparty risk and increasing trust in cryptocurrency services.
What was the QuadrigaCX incident?
QuadrigaCX was a Canadian crypto exchange that collapsed after the death of its founder, leading to the loss of $143 million in customer funds. The event highlighted the need for better custody solutions.
How established is Fidelity in the crypto space?
Fidelity has been actively building crypto infrastructure since 2018, including the launch of a digital assets subsidiary and a custody service described as successful by its CEO.
Conclusion
Fidelity’s entry into the Canadian Bitcoin custody market is a significant step forward in the maturation of the digital asset industry. By offering a regulated, institutional-grade service, Fidelity is not only responding to growing demand but also helping to build a more secure and accessible crypto ecosystem in Canada.
This development may encourage other major financial institutions to follow suit, further integrating digital assets into the traditional financial landscape.