Fidelity Ventures Into Blockchain Technology Research
Fidelity which is on the forefront to test technological products is now exploring blockchain with the aim to improve service delivery.
Fidelity Pumps Millions Into Blockchain Research
Mutual Fund firm Fidelity has rolled out a plan to invest in emerging technologies such as the blockchain. According to a top official from the firm, blockchain in the next big thing. The firm’s want to lay a foundation for competing with giant tech firms without outperforming historical competitors.
Generally, Fidelity has a reputation of taking the lead when it comes to technological matters. Over 50 years ago, the firm purchased its first mainframe. At some point, Fidelity even traded their mutual retail funds through a toll-free phone line. From the trade, Fidelity then launched the Fidelity Money Line which was a first in the exchange market.
How Fidelity Adopts New Products
This tradition has carried on due to Fidelity’s willingness to pump money into different ventures and adapting to technological changes. Through the F-CAT unit, Fidelity uses $2.5 million yearly to study new opportunities. We also have the Fidelity Lab that enables employees to abandon ventures that are not exciting.
Fidelity follows the fail fast and fails early philosophy which has been lauded to cut on costs. Once a project fails, energies are focused on more promising ventures. When the labs complete a project successfully, we have an internal pilot test before being released into the market.
Whenever there is a successful project, the firm run test internally before rolling out to customers globally. It is from this innovation that has seen Fidelity Labs create machine learning apps as Cora and Pebble watch.
With blockchain taking over, Fidelity has now focused on the technology. According to Fidelity’s blockchain head, Katie Chase, testing the system is still developing and at the concept of market phase. It is believed that the Fidelity Labs is currently working on user experiences using open and closed blockchains.
The firm’s boss Abby Johnson has some experience when it comes to cryptos. During the early stages of bitcoin, Johnson alongside her friends ventured into mining due to curiosity. Katie pointed out that the technology has been applied in some sectors but it is not yet mature to handle some of the major problems. She pointed out that they learned a lot during the phase.
Fidelity’s interest in the blockchain technology has soared especially with the rise in bitcoin price. Employees of the firm have also formed the blockchain club which has over 2, 600 participants. Additionally, the firm has signed a deal with CoinBase giving clients a chance to view their crypto reserves at any given time.