Fidelity Seeks Digital Trademarks| Investor’s Business Daily
- Bitcoin
- December 28, 2022
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- 13
Recent difficulties surrounding the collapse of FTX, the now-notorious cryptocurrency exchange and platform, do not appear to have cooled the ardor of Fidelity Investments for Bitcoin and other cryptocurrencies.
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The Boston-based mutual fund giant and brokerage has applied for three trademarks related to cryptocurrency, NFTs and the metaverse. The application is not related to FTX.
NFTs are non-fungible tokens that are digital assets based on blockchain technology, the same technology that underpins cryptocurrencies such as Bitcoin. Basically, NFT are digital files that can be bought and sold.
Bitcoin Opportunities For Fidelity
The metaverse is seen as a next generation of the internet. Techtarget.com describes the metaverse as “a single, shared, immersive, persistent, 3D virtual space where humans experience life in ways they could not in the physical world.”
Fidelity’s application concerns “(m)utual fund investment services in the metaverse and other virtual worlds; retirement fund investment services in the metaverse and other virtual worlds; financial planning in the metaverse and other virtual worlds,” according to a Twitter post of the application by trademark and patent attorney Michael Kondoudis. Kondoudis’ website says his practice is based on Washington, D.C.
Additional potential applications cited by the Fidelity filing include electronic bill payment in the metaverse and other virtual worlds. It also would apply to financial administration of credit card accounts in the metaverse and other virtual worlds.
Further, it would apply to real estate investment services in the metaverse and other virtual worlds.
And it would apply to digital currency services, including crypto trading, digital currency wallet and storage services.
The portion of the Fidelity application posted by Kondoudis does not specifically mention Bitcoin.
Fidelity Cites Innovation
A Fidelity spokesperson told IBD, “Fidelity is committed to innovating in how we deliver financial education and service through emerging platforms, whether that’s a Web 2.0 space like Reddit, or Web3 like the metaverse. In fact, earlier this year, Fidelity launched The Fidelity Stack in Decentraland, and in doing so, became the first brokerage firm to develop an immersive educational experience in the metaverse targeted to U.S. retail investors.”
The Fidelity Stack is an immersive metaverse experience. It offers lessons in investing basics.
Prior Fidelity Steps With Bitcoin
In April, Fidelity started offering Bitcoin in 401(k) plans. In September it said it would provide commission-free trading Bitcoin. And the firm has launched Fidelity Advantage Bitcoin ETF (FBTC), a Bitcoin ETF that trades in Canada.
Still, several senators have urged Fidelity to stop allowing members of 401(k) plans that permit it to allocate portions of their accounts to Bitcoin. The senators were Dick Durbin of Illinois, Tina Smith of Minnesota and Elizabeth Warren of Massachusetts.
The senators described 401(k) access to Bitcoin as an “unnecessary risk.” They wrote, “Any investment strategy based on catching lightning in a bottle … is doomed to fail.”
Labor Department Warning
Just one month before Fidelity said it would allow Bitcoin investments, the Labor Department — which governs aspects of 401(k) plans — warned employers that it might not be prudent to allow such investments.
The Fidelity spokesperson said it is premature to discuss the trademark applications.
Follow Paul Katzeff on Twitter at @IBD_PKatzeff for tips about personal finance and the best mutual funds.
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