Boston-based Fidelity Investments, a multinational financial services firm with $2.8 trillion in assets under management, says its test of an Ethereum-based token to power an internal rewards system for its employees is a success.
Fidelity’s Center for Applied Technology (FCAT), the company’s research and development arm, partnered with TokenSoft, a blockchain technology platform, to create an ERC-1404 token, according to a press release. The token launched in June, using a closed-loop rewards system designed to incentivize employee attendance at internal events and other activities.
Says Juri Bulovic, the innovation manager at FCAT,
“Our team was excited to test this new token with Fidelity’s club members. 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.”
TokenSoft builds enterprise-grade tools for companies that are entering the tokenized economy. The company focuses on compliance issues and security, working with attorneys and leaders in the space to build its open-architecture, white-label token issuance platform.
Led by chief executive officer Mason Borda, who built the first commercially viable custody solution on the Ethereum network, and chief technology officer James Poole, who built security software for companies like Symantec, Veritas and RSA Security, TokenSoft is working to help major companies explore new infrastructure to power the digital economy.
Fidelity’s token was launched through FCAT’s Bits and Blocks Club, an internal learning group focused on digital assets and blockchain technology.
“We are excited to complete this pilot for a unique implementation of restricted tokens with FCAT. This project demonstrates the primary value of modernizing and automating business processes for securities and other compliance laws to eliminate manual work by multiple parties.”