This episode is brought to you by:

Coinbase Prime. Coinbase Prime combines advanced trading, battle-tested custody, financing, and prime services in a single solution. Clients have used our comprehensive investing platform to execute some of the largest trades in the industry because we are the only publicly-traded company with experience trading and custodying crypto assets at scale. Get started with Coinbase Prime today at coinbase.com/prime.

Show Notes

[00:02:06] - [First question] - Why would anyone need a custodian for digital assets

[00:03:39] - Top reasons that clients choose Fidelity to manage their own custody

[00:05:03] - Customer experience handing over their crypto assets to Fidelity

[00:08:40] - Building a business managing digital and physical risk

[00:10:01] - Thoughts on the interplay between selecting a custodian and what their execution service options are

[00:12:02] - Why there’s such a lack of segregation compared to traditional markets

[00:14:05] - The type of capital you’d need to pre-fund in order to trade multiple markets

[00:15:07] - Instant trade settlements and what it’s like reconciling so many moving pieces in the cryptosphere

[00:16:39] - How big Fidelity Digital is today and the growth they’re seeing

[00:18:17] - How many different assets they currently custody today

[00:19:12] - Thoughts on what assets are appropriate to custody for their clients

[00:21:00] - What happens to the custodian and client if a cryptocurrency becomes recognized as a security on a regulatory level

[00:22:13] - How much of his time is spent dealing with the ever changing regulatory landscape and where his focus is as of late

[00:24:46] - His feelings on why the US seems to approach crypto regulation differently than other countries

[00:27:47] - Are we slowly getting to a better place with crypto regulators in the US?

[00:28:49] - Defending cryptocurrencies to regulators against waves of negative press

[00:30:42] - Moving from traditional finance to the crypto market and how to innovate in such a rapidly evolving industry

[00:32:43] - The pros and cons of being a crypto custody startup

[00:34:04] - How they acquire clients and market Fidelity

[00:34:44] - Capital-backed assets and how relevant insurance is when choosing a custodian

[00:36:24] - What he’s been seeing on the product development side of this space

[00:38:04] - Thoughts on third-party developers building on top of Fidelity

[00:39:47] - The different types of clients Fidelity has and the competitive landscape

[00:41:14] - Whether or not there’s a push from clients to become more involved in DeFi

[00:42:49] - The biggest issues that Fidelity has to overcome to become a custodian for the 10 biggest crypto assets today

[00:43:15] - What a crypto custodian will look like a decade from now and aggregated asset management

[00:47:05] - What he’s most excited to see built over the next six months and six years