Fidelity Increases Stake in OSL’s Parent Company
- Asset manager Fidelity has increased its stake in BC Technology Group.
- The company invested a further $6.71 into BC Group, raising its stake to 6.29%.
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Fidelity Investments, one of the largest asset managers in the world, has increased its stake in Hong Kong cryptocurrency company BC Technology Group.
According to an exchange filing obtained by the Business Times, the asset manager invested a further $6.71 million into the company, raising its stake to 6.29 percent.
Fidelity has made a series of strategic investments in the cryptocurrency industry through its cryptocurrency branch Fidelity Digital Assets. The company has previously partnered with Singapore-based crypto startup Stack Funds to expand its services in Asia and established an official entity in the U.K. to serve institutional investors.
The investment follows BC Technology Group’s announcement that it had raised $90 million in a top-up share placement. Morgan Stanley was set to act as the sole placing agent for the company, placing a total of 45,000,000 shares at HK$15.50 per share. Hugh Madden, the CEO of BC Group, said that the company would use the funds to meet the rising institutional trading demand and improve its software-as-a-service (SaaS) business.
BC Technology Group owns and operates OSL, a regulated cryptocurrency platform catering to institutions and professional investors. OSL is the first company to be granted a license for Type 1 and 7 regulated digital asset activities in Hong Kong by the Hong Kong Securities and Futures Commission (SFC).
- Once the change has been implemented, more than 23,000 U.S.-based companies could allow their employees to invest in BTC through their 401(k) retirement savings accounts.
- Fidelity plans to release the new option later this year, allowing 401(k) account holders to invest up to 20% of their portfolio in BTC.
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- Square, Fidelity, Coinbase and Paradigm have joined hands in establishing a new crypto lobbying group called the Crypto Council for Innovation.
- The new alliance will try to educate governments and regulators on the benefits of crypto, as well as correct any misperceptions about the crypto industry.
- The BTC collateralized loans are funded through the Silvergate Exchange Network (SEN).
- The collateral will be held by Fidelity Digital in its secure cold storage.