Fidelity Submits Plans to Tokenize U.S. Dollar Money Trading market Fund on Ethereum
Fidelity Investments has submitted a request to register a tokenized variant of its US dollar money trading market fund on Ethereum.
This initiative positions the $5.8 trillion asset manager alongside industry leaders such as BlackRock and Franklin Templeton, both actively investigating real-world asset (RWA) tokenization.
In a submission made to the US Securities and Trading protocol Commission (SEC) on 21 March 2025, Fidelity detailed its proposal for a novel share class called “OnChain,” which aims to track the transactions of the Fidelity Treasury Digital Fund (FYHXX).
The fund presently holds around $80 million, mainly in US Treasury bills.
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Fidelity’s OnChain Fund Awaits Approval, Anticipated Launch By May 30
Although the OnChain framework is still awaiting regulatory clearance, Fidelity expects it to become effective by 30 May 2025. The project intends to furnish investors with enhanced transparency and traceable transaction tracking through blockchain.
However, the company clarified that official ownership documentation will continue to be managed using traditional book-entry systems.
Fidelity, following BlackRock, has chosen Ethereum for its tokenized fund.
Why Ethereum?1. Security: secured by $120b
2. Reputation: 10 years without any downtime or protection breach
3. Liquidity: Most stables
4. Institution friendly: Hub of Tokenization, Decentralized finance activities, with… https://t.co/rl9yGA0V4c
— fabda.eth (@fabdarice) March 23, 2025
“The secondary recording of the OnChain class on a distributed database will not be regarded as the official database of ownership,” Fidelity stated. “The transfer agent will reconcile distributed ledger transactions with the official records on a daily basis.”
Crucially, Fidelity mentioned that the actual Treasury bills themselves would not be directly tokenized.
The filing also suggests broader aspirations, indicating that OnChain could be expanded to other blockchains in the future. This positions Fidelity as a rising participant in the growing crypto market of tokenized RWAs, which presently includes $4.78 billion worth of Treasury products, based on rwa.xyz.
Ethereum continues to be the leading platform, hosting more than $3.3 billion of tokenized assets, with Stellar trailing at $465.6 million.
BlackRock’s head of crypto, Robbie Mitchnick, recently reaffirmed Ethereum’s preeminence in the tokenization domain, labeling it the “natural default” for traditional finance entities.
Speaking at the Digital Asset Summit in New York, Mitchnick underscored that Ethereum’s decentralization, reliability, and security keep it as the favored option for tokenizing RWAs.
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Crypto ETF Filings Surge After Gensler’s Exit
Crypto ETF submissions have surged in the wake of SEC Chair Gary Gensler’s resignation on Jan. 20, signaling renewed enthusiasm among asset managers.
Gensler, recognized for his cautious approach to crypto regulations, departed under growing demands for clearer regulations in the digital asset sector.
His departure has sparked a wave of new crypto ETF submissions, including Osprey Funds and REX Shares, which filed for meme coin ETFs that include Dogecoin (DOGE), Official Trump (TRUMP), and Bonk (BONK) on Jan. 21.
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Key Takeaways
- Fidelity has submitted a filing to tokenize its $80 million U.S. money crypto market fund on ETH with a new “OnChain” share class.
- The tokenized fund is awaiting SEC approval and is projected to launch by May 30.
- Ethereum remains the leading network for asset tokenization, boasting over $3.3 billion in tokenized assets.
The post Fidelity Files to Tokenize U.S. Dollar Money Crypto market Fund on Ethereum appeared first on 99Bitcoins.
