Earlier this month, information surfaced from Fidelity International in London, a subsidiary of Fidelity Investments in Boston, of an in-house crypto broking game for their employees.
Dubbed “The Fidelity Cryptoleague,” the simulated trading game led by employees of the investment house is not, as reported by the company, the precursor to any cryptocurrency initiatives by the London-based company, however it is an indicator of the interest in digital assets.
Employees of Fidelity International are challenged to delve into the wild and volatile cryptocurrency marketplace with imaginary money and test their brokerage skills with an entirely new asset for most.
While this is not the first step to Fidelity International moving into cryptocurrency offerings or services in a similar way to its US-based sister company, it is a sign of massive interest from people working in traditional investment and finance who could be viewing cryptocurrency as viable investable assets for the future.
A bit of fun and understanding
It may not come as much surprise that Fidelity International admits that it is exploring the potential of blockchain technology; it is probably rarer now to find a company not pursuing the nascent space.
However, this “Cryptoleague” from Fidelity is a novel and fun way for their employees to get their hands digitally dirty with no repercussions. Investors and traders in cryptocurrency, despite their boasts, will mostly be doing guesswork, and for those with institutional money behind them, it is still a long way off before entirely buying into this digital asset class.
Starting with £10,000 in virtual money, players are tasked with building a portfolio of crypto. Those who end up with the most substantial returns are eligible to win cash prizes. Of Fidelity International’s 8,000 staff, 1,200 are already playing, it has been reported.
Craig Terrington, the corporate communications associate director at Fidelity International, spoke to me about the Fidelity CryptoLeague.
“Fidelity International, like many others in the industry, is actively assessing the wide-ranging potential for blockchain technology, but we do not have any current plans to launch any crypto initiatives,” Terrington stated.
“The Fidelity Cryptoleague, an employee-led simulated trading game to have a bit of fun while understanding more about crypto tokens trading, and is part of our culture of learning and focus on innovation.”
Furthermore, Fidelity CEO Anne Richards also outlined their game at a conference in June.
“We have a bitcoin trading game that we use internally, as a way of teaching people about distributed ledger technology and digital tokenization, which ultimately will be an important part of the whole financial system going forward,” she said.
While there are no tangible cryptocurrency offerings in the works, it still once again proves that many enterprises and financial institutions are viewing blockchain and cryptocurrencies as the possible next innovation.
For a financial company on the scale of Fidelity International, they also certainly do not want to be left behind, or caught off guard, when the industry does become mainstream and integral to market leading innovation.
Terrington also distinguishes between Fidelity International and its Boston-based parent company Fidelity Investments, which has been moving closer to a cryptocurrency product or service.
“It’s been widely reported that Boston-based, Fidelity Investments, is active in this space. Fidelity Investments and Fidelity International are separate companies.”
Almost ready
Fidelity Investments has been in the cryptocurrency news often in the past with its CEO, Abigail Johnson, speaking openly and excitedly about cryptocurrencies. Even more so, it has not only been Johnson playing lip service. The company is inching closer to launching a cryptocurrency trading service.
It is widely reported just how involved major enterprises are with blockchain technology, as highlighted in the Forbes Blockchain 50 list, but more and more there is evidence of the institutional powerhouses learning about, and entering, the cryptocurrency space.
Facebook and it's Libra project is a massive milestone for the adoption of cryptocurrency, but as Fidelity Investments works towards a cryptocurrency service, and even Fidelity International plays games with coins, it seems the question is not if, but when, cryptocurrency will become mainstream.
