The digital assets division of Fidelity Investments will allow institutional clients to use bitcoins as collateral for cash loans, Bloomberg reported . Fidelity Digital Assets President Tom Jessop clarified that his company will hold digital assets, not lend. According to him, the service will potentially interest hedge funds, miners and OTC platforms: “The loans will be longer term than a regular repo transaction. As markets grow, we expect this to become a fairly important part of the ecosystem. " Fidelity Investments is launching a new service in partnership with startup BlockFi. To obtain a loan, a Fidelity client must have an account with BlockFi. BlockFi chief executive Zach Prince said his company will manage volatility risks by offering 60% of the loan backed by Bitcoin. He added: "However, the program has room for customization at the client level and can be adapted to meet the needs of large companies." As a reminder, in October 2019, Fidelity Investments launched a custodian service for institutional bitcoin investors.