The digital asset industry owes much of its leadership to an unlikely incubator: Fidelity Investments. While this 77-year-old mutual fund giant represents traditional finance, it quietly became a Bitcoin pioneer in 2014—mining BTC at $400 and nurturing employees who now lead major crypto ventures.
The Birth of the "Fidelity Mafia"
Like PayPal's influential alumni network, Fidelity's crypto pioneers jokingly call themselves the "Fidelity Mafia". Key members include:
- Alex Thorn (Galaxy Digital Research Head)
- Juri Bulovic (Foundry Mining Lead)
- Matt Walsh (Castle Island Ventures Founder)
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Early Crypto Experiments at Fidelity
Under CEO Abby Johnson, Fidelity:
- Launched Bitcoin custody for hedge funds (2018)
- Explored retirement plans with BTC allocations
- Pledged to offer ETH/BTC trading to 43M+ clients
"We weren't just dipping toes into crypto—we dove in headfirst," says Thorn, who helped manage Fidelity's crypto VC arm after joining as a legal analyst in 2009.
Challenges and Missed Opportunities
Despite early momentum, Fidelity faced internal resistance:
- 2014: Johnson battled security teams to approve $200K mining equipment purchases
- 2018: Executives restricted crypto products to "experienced investors" only
- 2022: Labor Department criticized BTC 401(k) plans as "risky"
Bulovic reflects: "Fidelity could've been today's Coinbase—if not for conservative priorities."
The Talent Exodus
When BTC peaked above $60K in 2021, crypto-native firms poached Fidelity experts:
- Thorn joined Galaxy Digital (managing $2.4B+ crypto assets)
- Walsh launched Castle Island ($360M AUM)
- Bulovic shifted to Foundry's mining operations
Fidelity's Crypto Future
Today, Fidelity:
- Employs 600+ in its crypto division
- Custodies billions in digital assets
- Competes for the first spot Bitcoin ETF approval
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FAQ: Fidelity's Crypto Legacy
Q: Why did Fidelity embrace crypto early?
A: CEO Abby Johnson championed blockchain despite skepticism, calling her team "Bitcoin Vikings."
Q: How does Fidelity's approach differ from Coinbase?
A: Fidelity prioritized institutional services, while Coinbase targeted retail users aggressively.
Q: Will Fidelity's ETF change crypto markets?
A: Approval could bring Wall Street-level accessibility to BTC trading via brokerage accounts.
Q: What lessons does the "Fidelity Mafia" offer?
A: Traditional finance institutions can incubate disruptive innovation—with leadership willing to take calculated risks.