Fidelity’s Center for Applied Technology (FCAT) has successfully completed trials of a new digital token to reward employees for performance and attendance.
In collaboration with San Francisco-based security token platform TokenSoft, Fidelity has now created and deployed an internal token using the ERC-1404 token standard.
ERC-1404 tokens are compliant with US Securities and Exchange Commission (SEC) guidelines for securities, and like ERC-20 tokens on Ethereum, they can be tailored to specific use cases.
Mason Borde, TokenSoft’s CEO, announced the initiative back in June at FCAT’s ‘Bits and Blocks Club’ – a Fidelity employee learning group for digital assets.
At the time, Juri Bulovic, Blockchain Product Manager at FCAT, commented:
“For employees, it’s a real use case for restricted tokens and gives them an opportunity to get hands-on experience with tokens, wallets, and other blockchain technology to understand how it works and how we might apply this in other areas.”
The token, referred to as ‘BBT Token’, was deployed as a restricted token standard used by Fidelity’s Bits and Blocks Club.
Members could use the BBT Token as part of a closed-loop rewards system, which rewarded employees for attending internal training events.
Most importantly for Fidelity, it was the first use of a token which could have complex regulatory and operational requirements coded into its contract.
The token was controlled via TokenSoft’s Token Administration Platform, which has been designed specifically for institutional-grade scenarios.
Fidelity’s focus on digital assets
Fidelity has long held a focus on bringing digital assets to institutional investors, announcing in October 2018 that it would be offering “enterprise-quality” custody and trading for Bitcoin to its customers.
The firm reiterated its positive stance on blockchain with the live launch of Fidelity Digital Assets early in 2019, created to offer cryptocurrencies and blockchain-based assets to family offices, pensions, and hedge funds.
Abigail Johnson, CEO of Fidelity Investments, has previously shared that the firm’s crypto efforts are part of a bid to attract Wall Street investors into the digital asset space. Johnson shared in January:
“Our goal is to make digitally-native assets, such as Bitcoin, more accessible to investors.”
Fidelity’s deployment of an internal token is evidence of its commitment to educating its employees on digital assets and wrestling with some of the toughest regulatory and technical challenges in the space.