Fidelity Investments Will Rewards Its Employees Cryptocurrencies

in #coinspace5 years ago

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One of the largest asset managers in the world, Fidelity Investments, announced today that it will start rewarding its employees in cryptocurrency. The move is set to give cryptocurrencies an everyday use case.

A new pilot project begins
Fidelity Investments is working on a pilot initiative with the help of its research and development arm, the Center for Applied Technology (FCAT). It has collaborated with TokenSoft, to create a new ERC-1404 token on the Ethereum blockchain to give these rewards away. TokenSoft worked on the BBT restricted token that creates a new rewards program compliant with the standards at Fidelity.

It said on an official Medium post, “Post issuance, TokenSoft integrated the BBT token contract into TokenSoft’s Token Administration Platform which can be used by financial institutions like Fidelity.” The closed-loop system is designed to help the company’s employees attend activities and events.

The company’s adoption of cryptocurrencies is crucial for the industry. It is a mainstream, Wall Street financial giant that is interested in a future with digital currencies. Most recently, its launched its crypto arm called Fidelity Digital Assets that provides both trading and crypto custodian services to its users. However, instead of going for retail clients, it is interested in creating a crypto infrastructure for institutional investors. Its new crypto trading arm could be up by the end of 2019.

Why focus on ERC-1404?
The Ethereum blockchain ecosystem allows developers to create new tokens using a number of set standards. ERC-1404 is one such token standard that allows crypto coins to adhere to complex regulatory architecture. TokenSoft said that using this token standards helps in maintaining top notch compliance while ensuring that unauthorized transactions remain at bay.

The step from Fidelity shows how cryptocurrencies are no longer the wild-west of the financial industry. Major companies in the sector are now paying attention to compliance and regulation. Coinbase, a prominent crypto exchange in the US, recently filed a patent for an artificial-intelligence based compliance system that creates a self-scoring system based on 20 different factors. The system will help in complying with regulations and ensure that crypto companies handle risk more easily.

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