Fidelity’s crypto custody business records 60% loss in 2023

Fidelity Digital Assets, the crypto custodian service offered by Fidelity, experienced a significant decline in revenue in 2023. According to documents filed with Companies House, the platform recorded a 59% drop in revenue, resulting in losses of over £7 million. The revenue generated by Fidelity Digital Assets for the year was £545,000, down from £1.34 million in 2022. Operating expenses also increased by 32% to £7.8 million, primarily due to higher staff salaries. This led to a total loss of £7.1 million, a significant increase from the £2.5 million loss in the previous year. Fidelity attributed the decline in revenue to a decrease in service-level agreement fees but remains optimistic about future growth as new clients are expected to join the platform. Despite the losses, Fidelity continues to expand its team, with recent hires in the crypto space.