Fintech investments are getting a new lease on life in New York City, with companies like Fidelity Investments, First State Capital and First City Capital investing in a slew of blockchain-based companies.
These investments are creating an investment environment in which traditional investment firms can focus on the business opportunities they can create with blockchain technology, instead of investing in the companies themselves, according to New York-based First City.
“In some ways, blockchain technology is a great opportunity for traditional investment houses,” First City co-founder and CEO Robert McLeod said in an interview.
“Blockchain is the most secure and transparent way to buy and sell stocks, bonds, ETFs and other securities.”
While the industry is in its infancy, McLeod noted that the technology can be used to better analyze how investments and assets perform in real-time.
For example, Fidelity and First State recently invested $100 million in NewYork City-based Coin.btc, which McLeod described as a “fintech startup that is leveraging blockchain to create a token economy that is powered by blockchain technology.”
McLeod said that, by focusing on blockchain-backed investments, Fintecom can get the “most bang for its buck” while maintaining its own independence.
“Blockchain technology is the best way to make sure we can track the financials of these companies,” McLeod explained.
“We can actually track them and make sure they’re operating at a high level of efficiency.”
Fidelity Investments’ First City invested in two companies last year, one of which is now going public and the other one is still in the development stage.
First City has been looking to get into the fintecos business for a while.
McLeod noted in a recent interview that the company recently hired former Goldman Sachs executive Michael Gartner as its Chief Financial Officer.
Gartner will also oversee the development of Finteck’s investment portfolio.
“We’ve been looking for someone who has some kind of experience and knowledge in this space,” McLean said.
“I think that’s the best compliment I can give.
He’s obviously got a wealth of experience in this area, and I think he’ll add considerable value to our team.”
The First City investments are part of a broader focus for Fintebit, which is looking to leverage blockchain to support a more integrated and transparent investment environment.
The firm has already launched its first blockchain-driven investment product, a blockchain-powered portfolio manager that uses Fintex to track the assets of companies, including its own.
The firm also announced last week that it will open a blockchain accelerator in New Jersey, with the goal of building a network of startups focused on the fashions and services that blockchain-enabled technology can help deliver.
The fintest project at the New York Stock Exchange, which was recently renamed, will also use Fintek to monitor companies and make investment decisions.
The startup has been developing a blockchain platform for its investors to manage their investments and track the performance of their investments for more than two years.
McLean said that Fintet has been working with the exchange since 2015, and that the first step in integrating blockchain with their platform was adding a token called fintex, which the firm created.
“The Fintest team, with a lot of help from the Fintes team, was able to put together this token that allows for the integration of the FInteks platform into the exchange,” McLearm said.
“Our token is the fidget spin.
It’s the token that people buy and hold on their wallets.”
The fidget spins can be purchased with a bitcoin or cryptocurrency, which are both accepted at the exchange.
McLennan said that the Fink team will continue to work on building Fintenomics, which will include blockchain-integrated applications for the exchange and for the stock market.
The company plans to use blockchain technology in a variety of ways, including allowing people to buy stocks with bitcoin or other cryptocurrencies, as well as selling shares on the exchange in a fiat currency.
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