Fidelity’s research and development division has completed a proof-of-concept process with security token expert Tokensoft, says the latter’s Head of Operations Lawson Baker in a recent blog post – creating a tokenized rewards system for Fidelity employees.
Fidelity is the fourth largest asset manager in the world with USD 7.2 trillion in assets under management.
Baker said that the Fidelity Center for Applied Technology (FCAT), a Fidelity R&D division, runs an internal learning group named the Bits and Blocks Club, which focuses on digital assets and blockchain.
The club, said Baker, successfully launched a restricted ERC-1404 token on the Ethereum blockchain.
The Tokensoft chief stated that Fidelity employees had used the token in a “closed-loop rewards system designed to encourage employees to attend internal events and other activities.”
Baker added that the club had turned to security token solutions after trying out other rewards programs.
Eventually it won’t just be “reward” tokens, there will be tokenization of our future output potential.
Imagine being able to pledge your future productivity as collateral.
— Jon Kutsmeda (@jonkutsmeda) November 28, 2019
Meanwhile, in October, Fidelity rolled out its much-anticipated crypto custody solution.