Fidelity Joins the Blockchain Tokenization Trend
Fidelity Investments is making strides in blockchain technology with a new filing for a tokenized version of its Treasury Digital Fund on Ethereum. This move positions Fidelity alongside financial giants like BlackRock and Franklin Templeton in the digital asset space.
Fidelity files for On-Chain US Treasury Fund on Ethereum. Launch by May 30, if approved.
— Thomas Kralow (@TKralow) March 23, 2025
$5.8T giant doubles down on tokenization.
They’re moving fast. Are you?
Stay sharp.
Fidelity files for On-Chain US Treasury Fund on Ethereum. Launch by May 30, if approved.
— Thomas Kralow (@TKralow) March 23, 2025
$5.8T giant doubles down on tokenization.
They’re moving fast. Are you?
Stay sharp.
OnChain: A Step Toward Transparency
The March 21 filing with the U.S. Securities and Exchange Commission (SEC) outlines Fidelity’s plan to launch "OnChain," a share class that will track transactions of its $80 million Fidelity Treasury Digital Fund (FYHXX). By leveraging blockchain, Fidelity aims to enhance transparency and verifiability while maintaining traditional book-entry records as the official ledger.
Regulatory Approval and Future Expansion
While the OnChain fund awaits regulatory approval, Fidelity anticipates launching it on May 30. Though transactions will be recorded on the Ethereum blockchain, the official ownership record will still be managed by Fidelity’s transfer agent, ensuring regulatory compliance.
Tokenization Without Direct Crypto Exposure
Despite the blockchain integration, Fidelity clarified that the U.S. Treasury bills in the fund will not be directly tokenized. Instead, the initiative focuses on tracking and recording transactions in a more transparent and efficient manner.
Growing Adoption of Asset Tokenization
The asset management industry is increasingly turning to blockchain for tokenizing traditional assets like Treasury bills and bonds. The tokenized Treasury market is valued at approximately $4.78 billion, with Ethereum leading the way at over $3.3 billion in tokenized assets.
Ethereum as the Preferred Blockchain
BlackRock’s Head of Crypto, Robbie Mitchnick, recently reaffirmed Ethereum as the "natural default" for institutional asset tokenization. He highlighted Ethereum’s credibility, decentralization, and security as key advantages, reinforcing its status as the primary choice for financial firms looking to bring real-world assets on-chain.
