Fidelity invests again in Hong Kong crypto exchange OSL

Asset management giant Fidelity has made a second investment in BC Technology Group, the operator of Hong Kong cryptocurrency exchange OSL.

The move comes in the wake of the Securities and Futures Commission of Hong Kong granting the firm a license to “operate a regulated brokerage and automated trading service for digital assets” on Dec. 15.

According to data published by the Hong Kong exchange, Fidelity acquired 3.3 million shares of BC Technology Group (BCTG) for $6.74 million. The investment made by Fidelity appears to be a part of a $90 million shares placement initiative announced by BCTG earlier this month.

Fidelity first invested in OSL’s operator in February, according to a Bloomberg report, acquiring a $14.2 million stake in BCTG.

At the time of the previous investment, Fidelity reportedly owned 5.6% of the crypto exchange’s operator. The new investment raised its stake to 6.3%.

In February, BC Technology Group CEO Hugh Madden said he was excited at having a traditional financial heavyweight showing interest in an investment firm primarily focused on crypto assets:

“We’re excited to see that world-class equity investors are increasingly participating in the fast-growing digital asset sector, and we look forward to reaching new milestones with our industry-leading institutional investors.”

Still, Fidelity’s participation in this market should come as no surprise to anyone who has been closely following the news from the cryptocurrency industry. 

In October, Fidelity Digital Assets invested in Singapore-based Stack Funds, which provides cryptocurrency custody services to wealthy individuals and family offices, according to Bloomberg.

“There is a critical need for platforms which have a deep understanding of what local and regional investors are looking for,” said Christopher Tyrer, head of Fidelity Digital Assets Europe, Bloomberg reported.

That understanding “has historically been lacking in the digital asset space,” Tyrer said.

Fidelity has been aggressively championing crypto as other mainstream financial firms begin turning towards supporting bitcoin as a new “digital gold” that has a place in portfolios.