In the fast-evolving world of digital assets, few stories are as compelling as the rise of the “Fidelity Mafia” — a tight-knit network of former employees from Fidelity Investments who have gone on to shape the future of cryptocurrency. From leading mining operations to founding top-tier crypto venture funds, these alumni are proving that traditional finance can be a powerful springboard into the decentralized future.
Fidelity, a 77-year-old financial titan known for mutual funds and retirement accounts, might seem like an unlikely pioneer in the crypto space. Yet, it was one of the first major financial institutions to embrace Bitcoin — starting to mine the asset in 2014 when prices hovered around $400. Encouraged by CEO Abby Johnson, Fidelity began experimenting with blockchain technology, building internal tools, and eventually launching Fidelity Digital Assets in 2018 to offer custody and trading services for institutional clients.
This early commitment attracted forward-thinking talent eager to explore the frontier of finance. Many of today’s most influential figures in crypto cut their teeth at Fidelity, forming what they now jokingly call the “Fidelity Mafia” — a nod to PayPal’s famed alumni network that spawned companies like Tesla, LinkedIn, and YouTube.
The Rise of the Crypto Alumni Network
Among the most prominent members is Alex Thorn, now Head of Firmwide Research at Galaxy Digital. Thorn started at Fidelity in 2009 in the legal department but quickly became a self-appointed advocate for crypto innovation. Known internally as the “Bitcoin Viking,” he helped lead Fidelity’s earliest blockchain experiments and later joined its corporate venturing arm focused on digital assets.
“We didn’t approach crypto with fear just because we came from traditional finance,” Thorn said. “We dove in headfirst — and that’s what drew so many early believers to Fidelity.”
Other key figures include Juri Bulovic, Mining Lead at Foundry — one of the largest Bitcoin mining pools globally — and Matt Walsh, founding partner at Castle Island Ventures, a Boston-based crypto-focused VC firm managing over $360 million in assets.
These leaders often stay connected through informal channels like private Telegram groups, sharing insights and supporting each other’s ventures. Their shared experience at Fidelity gave them not only technical expertise but also credibility in a space often criticized for its lack of regulatory compliance and institutional rigor.
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A Vision Ahead of Its Time
Much of Fidelity’s early momentum stemmed from Abby Johnson’s personal conviction in Bitcoin’s potential. In 2014, she famously pushed to spend $200,000 on mining equipment from Chinese suppliers — a proposal initially rejected by finance and security teams. Undeterred, she reportedly walked into meetings declaring: *“Look, this is $200,000 — we’re doing this.”*
Her leadership signaled a rare openness within Wall Street’s conservative culture. At a time when JPMorgan’s Jamie Dimon called Bitcoin a “fraud” and a “tulip bulb,” Johnson stood firmly in opposition, advocating for broader access to digital assets for both institutions and retail investors.
Still, internal resistance persisted. In 2018, Kathleen Murphy, then-head of Fidelity Personal Investing, stated that crypto offerings would be limited to sophisticated investors due to regulatory concerns — a stance that disappointed many within the company’s crypto division.
“That comment really dampened morale among those of us focused on bringing crypto to everyday users,” said one former employee. “We believed mainstream adoption was not only possible — it was inevitable.”
Missed Opportunities and Strategic Shifts
Despite its early lead, Fidelity hesitated to expand aggressively into consumer-facing crypto products. Critics argue that the firm could have become a household name in digital asset trading — much like Coinbase, which launched two years after Fidelity began mining Bitcoin.
“Hindsight is 20/20,” said Juri Bulovic, who left Fidelity in 2021 after eight years. “But looking back, I truly believe Fidelity could have been the dominant crypto exchange today if we’d moved faster on retail access.”
Regulatory uncertainty and risk-averse divisions within the firm slowed progress. While Fidelity built robust infrastructure for institutions, startups with bold visions and ample venture funding lured away top talent.
During the 2021 bull run — when Bitcoin surged past $60,000 — crypto-native firms offered lucrative equity packages and mission-driven cultures that were hard to match. Alex Thorn departed that year to build Galaxy Digital’s research arm under billionaire Mike Novogratz. Matt Walsh had already left in 2018 to launch Castle Island Ventures with support from Fidelity’s innovation ecosystem.
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The Legacy Lives On
Today, Fidelity continues to invest heavily in digital assets. Its crypto division now employs more than 600 people — up from just dozens in 2018 — and safeguards billions in client-held cryptocurrencies. In a major step toward mainstream integration, Fidelity has filed for a spot Bitcoin ETF, which would allow investors to buy Bitcoin exposure through traditional brokerage accounts like any stock.
Tom Jessop, President of Fidelity Digital Assets, emphasized the firm’s long-term vision:
“We’re working across all parts of Fidelity to build a sustainable digital asset strategy — one that aligns with our core values of trust, security, and client focus.”
Meanwhile, the “Fidelity Mafia” continues to grow in influence. Collectively, they represent a unique blend of institutional discipline and crypto-native innovation — a powerful combination as the industry navigates increased scrutiny from regulators and shifting market dynamics.
Frequently Asked Questions (FAQ)
Q: What is the ‘Fidelity Mafia’?
A: The term refers to a network of former Fidelity employees who now hold leadership roles across major crypto companies, including Foundry, Galaxy Digital, and Castle Island Ventures.
Q: Why did so many Fidelity employees leave for crypto startups?
A: While Fidelity pioneered early crypto initiatives, slower retail expansion and internal caution led ambitious talent to join faster-moving startups with strong funding and clear crypto missions.
Q: Did Fidelity really mine Bitcoin?
A: Yes. Starting in 2014, Fidelity began mining Bitcoin using equipment purchased under CEO Abby Johnson’s direction — making it one of the first traditional financial firms to do so.
Q: Is Fidelity still active in crypto?
A: Absolutely. Fidelity Digital Assets provides institutional custody and trading services and has applied for a spot Bitcoin ETF. The team has grown to over 600 employees.
Q: Who is Abby Johnson and why is she important to crypto?
A: As CEO of Fidelity and daughter of its founder, her early advocacy for Bitcoin helped legitimize digital assets within traditional finance and attracted pioneering talent.
Q: Could Fidelity have become a major crypto exchange?
A: Many insiders believe so. With its resources and head start, Fidelity had the potential to rival Coinbase — but regulatory caution and internal resistance limited its retail ambitions.
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Core Keywords
- Fidelity Mafia
- Abby Johnson
- Bitcoin ETF
- Fidelity Digital Assets
- Crypto talent
- Institutional crypto adoption
- Galaxy Digital
- Castle Island Ventures
The story of the Fidelity Mafia isn’t just about career moves — it’s about how vision, timing, and culture converge to shape an industry. As digital assets mature, the bridge between Wall Street and Web3 grows stronger — and much of that connection runs through a single Boston-based financial giant.