Fidelity Investments files a subscription for a tokenized version of the USD money market fund on Ethereum.

Fidelity Investments has filed for a tokenized version of the USD money market fund on Ethereum, joining BlackRock and Franklin Templeton in the blockchain tokenization space.

Fidelity's filing on March 21 with the U.S. Securities and Exchange Commission states that "OnChain" will help track transactions of the Fidelity Treasury Digital Fund (FYHXX), a fund worth 80 million USD that includes almost all U.S. Treasury bonds.

While OnChain is awaiting approval from regulatory authorities, Fidelity expects it to take effect on May 30.

Fidelity's tokenized version of the Fidelity Treasury Digital Fund registration profile | Source: U.S. Securities and Exchange Commission (SEC)OnChain aims to provide investors with transparency and the ability to track, verify the share transactions of FYHXX, although Fidelity will maintain traditional record-keeping as the official ownership ledger.

"Although the secondary records of OnChain on the blockchain do not represent the official ownership records, the transfer agent will reconcile the secondary blockchain transactions with OnChain's official records at least daily."

Fidelity stated that U.S. Treasury bonds will not be directly tokenized.

A $5.8 trillion asset management company has revealed that they may also expand OnChain to other blockchains in the future.

In recent years, an increasing number of asset management companies have turned to blockchain to tokenize treasury bonds, bonds, and private credit.

According to rwa.xyz, the tokenization market for real-world assets (RWA) for Treasury products is currently valued at 4.78 billion USD, led by the BlackRock USD Institutional Digital Liquidity Fund (BUIDL) with 1.46 billion USD.

The market capitalization of blockchain-based Treasury products | Source: rwa.xyzOver $3.3 billion of RWA tokenized on the Ethereum network, followed by Stellar with $465.6 million.

"There is no doubt that the blockchain we are starting to tokenize will be Ethereum and that is not just BlackRock's choice, it is the almost default platform."

"Clearly, customers are making choices that lean towards decentralization; they value reputation and security, and that is a significant advantage that Ethereum continues to have," he stated at the Digital Asset Summit in New York on March 20.

You can check the price of ETH here.

Disclaimer: This article is for informational purposes only and is not investment advice. Investors should do thorough research before making any decisions. We are not responsible for your investment decisions.

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Viet Cuong

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