Fidelity Files for Blockchain-Based Tokenized U.S. Treasury Fund
Fidelity Investments has filed with the U.S. Securities and Exchange Commission to register a blockchain-based, tokenized version of its U.S. dollar money market fund, specifically an "OnChain" share class of the Fidelity Treasury Digital Fund (FYHXX). This fund, which launched last year, holds cash and U.S. Treasury securities.
Key points include:
- The OnChain class currently utilizes the Ethereum network.
- Future expansion to other blockchains is possible.
- Registration is pending regulatory approval, with effectiveness expected on May 30.
- The move aligns with trends among global banks and asset managers to tokenize traditional financial instruments for operational efficiency and faster settlements.
- The tokenized U.S. Treasury market is valued at $4.77 billion, having increased nearly 500% over the past year.
- Fidelity manages $5.8 trillion in assets and is a leading issuer of spot bitcoin and ether ETFs.
Blackrock has also entered this space, launching a tokenized T-bill fund called BUIDL, which has attracted nearly $1.5 billion in assets. Franklin Templeton's on-chain money market product garnered $689 million since its launch in 2021.