2025-03-24
On March 21, 2025, Fidelity Investments launched a new
version of its Treasury money market fund that uses blockchain technology. The
new share class is called “OnChain”, and it will run on the Ethereum network.
sec.gov/Archives/edgar/data/917286/000113322825002995/ftdf-efp15119_485apos.htm#useof
Investors will be able to track their
fund shares on the Ethereum blockchain. However, Fidelity will still keep the official
records in its traditional system.
The blockchain record is for extra
transparency and will be updated daily.
The fund itself invests in cash and
U.S. Treasury securities, aiming to provide income while keeping the investment
safe and easy to access.
The Treasuries themselves won’t be
tokenized — only the share ownership is being recorded on the blockchain.
Fidelity manages about $5.8 trillion
and is joining other major firms like BlackRock and Franklin Templeton in the
growing market for tokenized real-world assets — traditional financial products
that are recorded on blockchains.
The total value of tokenized U.S.
Treasuries is now around $4.77 billion, with most of it on Ethereum.
BlackRock leads the space with its BUIDL
fund, holding about $1.5 billion. Franklin Templeton has about $689 million in
a similar fund.
Fidelity’s new OnChain shares are
expected to launch on May 30, if approved by regulators.
Also, Fidelity has registered a Solana-based
fund, which suggests it may expand beyond Ethereum in the future.
Fidelity Treasury Digital Fund (FYHXX) | Fidelity Institutional
