Crypto Notebook: Fidelity Digital Assets, Stablecoins, Bearish Roubini

The last week has brought a host of negative and positive comments to the digital asset space starting with the announcement by Fidelity for its custodian solution for trading bitcoins and ending with the tweet storms from Nouriel Roubini, writes Bob Savage Wednesday.

In between, the stablecoins diverged with pegs to the U.S. dollar (USD) askew and blips in pure crypto coins spiking depending on the exchange. Volumes rose across the entire spectrum and many technicians are calling for a breakout now.

The key questions about the “institutionalization” of crypto continue to revolve around the necessary and sufficient conditions.

The investment by the Yale Endowment into two funds trading cryptos, investing in exchanges and start-up blockchain businesses was a necessary condition met last week.

The custodian push from Fidelity is similar – yet another condition on the path towards more institutional investment.

What remains missing is clearly sure regulation, more transparent exchanges and better research into the space – with value discussions beyond the momentum and volatility factors that presently seem to drive all price.

The breakdown in some stable coins linked to the USD and the diversity of outcomes in crypto in the last week are important events in the push for further flows into the new crypto asset class.

Perhaps this is the jolt to spur more transparency upon exchanges, the daily NAV of stablecoins and more research into how different digital currencies work.

Forbes: Fidelity launches institutional platform for bitcoin and ethereum Oct. 15.

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