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Fidelity Expressing Further Interest in the Cryptocurrency and Blockchain Industry

News

Fidelity Expressing Further Interest in the Cryptocurrency and Blockchain Industry

Fidelity Investments is a 72-year company with more than $7 trillion in investors funds under management, and despite their well-established position within the traditional retail markets, they are incredibly open to nascent technologies, like cryptocurrency and blockchain. Fidelity is open to creating a new technology for selected markets. In certain ways, it is much a technological company, as they are a finance company, poised to compete with silicon valley giants and innovators like Google. Fidelity founder, who had a simple mantra, often was quoted to tell employees that it is better to “take intelligence risks than to follow the crowd”. Fidelity was one of the first financial institutions to purchase and use a supercomputer in the 1960s and was first companies to sell investment products in the 1970s. They also built infrastructure heavily dependent on an early version of artificial intelligence, using voice-activated computers for some of their products.
In 1990, Fidelity developed a group dedicated to testing and researching confidential technologies, called the Fidelity Center for Applied Technology ( FCAT). This group is essentially an environment for the company’s employees to use new products without fear of failure or wasting resources. Several years ago, Fidelity has been placed in a leading position for financial companies in the blockchain industry taking significant, although slow steps to understand bitcoin and blockchain.
Their CEO, Abby Johnson did talk about the company ‘s interest in technology, saying: “A few plus years ago, myself and a few other senior executives here were just curious about what was going on, particularly with Bitcoin. We started getting together to say, we’ve got to understand this.’Fidelity started a small bitcoin mining operation, buying bitcoin at a rate of $ 180 per bitcoin. Johnson spoke about the results of this test: ”all of the sudden we were making money, which has never been intended”.
Fidelity’s independent charity division has also seen huge success in taking bitcoin donations, more than $ 69 million in 2017, especially led by the vast amount of new wealth.”It worked out because there were so many people that made wealth with bitcoin, who were looking to be philanthropists. We made them easy for them” Johnson explained.
At a recent event at the company’s headquarters, Johnson teased the release of an upcoming cryptocurrency product, stating that it was going to be released by the end of this year. Although details surrounding this product are still foggy, Johnson gave the industry a little insight into the mysterious product, saying:”We’ve got a few things underway, a few things that are partially done but also kind of on the shelf because it’s not really the right time. We hope that this will be announced at the end of the year.