Fidelity Investments has officially filed to launch a blockchain-enabled version of its U.S. dollar money market fund, signaling its entry into the rapidly growing space of tokenized assets.
In a filing submitted to the U.S. Securities and Exchange Commission (SEC) on Friday, Fidelity revealed plans to register an “OnChain” share class for its Fidelity Treasury Digital Fund (FYHXX). This fund, which holds cash and U.S. Treasury securities, was introduced late last year. The OnChain version would leverage blockchain technology as a transfer agent, beginning with the Ethereum network, with potential future expansions to other blockchains.
Pending regulatory approval, the new product is expected to launch by May 30, 2025.
This move places Fidelity, which manages $5.8 trillion in assets, alongside other financial giants entering the booming tokenized U.S. Treasuries sector, which has seen an astonishing 500% growth in the past year. Tokenization of traditional financial instruments such as government bonds and funds is gaining traction as banks and asset managers look to improve operational efficiency and enable faster, 24/7 settlements.
Fidelity’s filing places it in competition with firms like BlackRock. In March 2024, BlackRock, in partnership with digital asset company Securitize, launched its own tokenized U.S. Treasury bill fund, BUIDL, which has rapidly grown to nearly $1.5 billion in assets. Another player, Franklin Templeton, debuted its tokenized money market fund in 2021, which has since gathered $689 million.
The total market value of tokenized U.S. Treasuries currently stands at $4.77 billion, showing explosive growth in just a year.
In addition to its move into tokenized Treasuries, Fidelity is a major player in the U.S. Bitcoin and Ether exchange-traded funds (ETFs), with $16.5 billion in its FBTC fund and $780 million in its FETH fund, according to SoSoValue data.
Fidelity’s entry further solidifies its commitment to embracing blockchain technology, aligning with a growing trend of tokenizing real-world assets for improved efficiency and accessibility in the financial markets.
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