Financial Giant Fidelity Pilots Tokenized Employee Rewards Initiative
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.
“As part of the club’s efforts, they had previously utilized the concept of gamification but found the process was manual and restrictive.”
And the Tokensoft executive quoted Juri Bulovic, a FCAT Blockchain Product Manager, as stating that using the ERC-1404 token had provided Fidelity staff with the “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.”
Analysts responded positively to the news, stating that employees of the future would soon be able to tokenize their work output, using their “future productivity as collateral.”
Meanwhile, in October, Fidelity rolled out its much-anticipated crypto custody solution.