Fidelity Investments is launching a new Ethereum-based share class called ”OnChain” for its Treasury money market fund, according to a recent filing with the U.S. Securities and Exchange Commission (SEC). The move introduces blockchain technology into the traditional financial space by recording shares on the Ethereum network.
The asset management giant, which manages around $5.9 trillion in assets, will issue shares of its Fidelity Treasury Digital Fund (FYHXX) with ownership recorded both on the Ethereum blockchain and in traditional book-entry form. While the blockchain record is secondary, Fidelity will reconcile the digital transactions daily with the official ownership ledger.
“The transfer agent maintains the official record of share ownership of the OnChain class in book-entry form. Ownership of the OnChain class will also be digitized on a public blockchain,” the filing notes, clarifying that the blockchain-based record will not be the primary source of ownership.
The fund itself will continue to invest in cash and U.S. Treasury securities, adhering to typical money market fund regulations focused on capital preservation and liquidity. However, the Treasuries themselves will not be tokenized—blockchain technology will only be applied at the level of share ownership.
Fidelity’s move into tokenized assets places it alongside other major players in the space, including BlackRock and Franklin Templeton, as the market for tokenized real-world assets (RWAs) continues to grow. According to rwa.xyz, the tokenized U.S. Treasury market is valued at around $4.77 billion, with Ethereum-based tokenized Treasuries accounting for $3.3 billion of that total.
BlackRock’s tokenized T-bill fund, BUIDL, currently leads the sector with approximately $1.5 billion in assets, while Franklin Templeton’s FOBXX fund has raised about $689 million.
Fidelity’s Ethereum-based share class is expected to go live on May 30, pending regulatory approval, marking a significant step in the integration of blockchain technology with traditional finance.
In addition to the launch of OnChain, Fidelity has also registered a statutory trust called the Fidelity Solana Fund in Delaware, suggesting the asset manager is exploring the possibility of creating Solana-based exchange-traded products. This move underscores growing institutional interest in incorporating blockchain into established financial products.
Featured image from: cointelegraph.com