Fidelity Investments, a financial giant with nearly USD 2.5 trillion of assets under management, has been experimenting with an internal cryptocurrency for employee rewards. Specifically, Fidelity’s Center for Applied Technology (FCAT) Bits and Blocks Club partnered with Tokensoft to launch an ERC-1404 token.
ERC-1404 is a protocol for creating tokens on the Ethereum blockchain. ERC-1404 allows token operators to whitelist and blacklist users, as well as restrict transfers between certain addresses, cap the number of tokens that can be received by any given address, and to put limits on the number of tokens that can be exchanged for goods at the employee rewards store.
Essentially, ERC-1404 allows Fidelity to be in complete control of their token. Simultaneously, the token runs on the well-known and highly-secured Ethereum blockchain. It is clear that ERC-1404 can be used by corporations to combine the best aspects of decentralization, such as immutability and security, with centralized aspects to ensure that the rewards system does not get out of control.
Ultimately, this internal Fidelity token was used to incentivize employees to attend meetings and other activities, and simultaneously gave employees hands-on experience with cryptocurrency. Juri Bulovic from Blockchain Project Management at FCAT says “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”.
Thus, this experiment with an employee rewards token may eventually lead Fidelity even deeper into the blockchain and crypto world.