Everything You Should Understand About Fidelity’s Latest ‘OnChain’ Share Class

Fidelity Investments has recently revealed intentions to introduce its “OnChain” share class, a tokenized variant of its Fidelity Treasury Digital Fund (FYHXX), utilizing the ETH distributed record. The firm submitted a filing with the US Securities and Exchange Commission (SEC) on March 21, 2025, with a goal to launch by May 30, pending regulatory approval. This action positions Fidelity alongside key players such as BlackRock and Franklin Templeton within the advancing arena of distributed ledger tokenization.

The Fidelity Treasury Digital Fund oversees $80 million, primarily consisting of U.S. Treasury bills. The “OnChain” share class will not be tokenizing the Treasury bills directly. Instead, it will monitor the fund’s transactions on Ethereum, providing investors with enhanced transparency and verifiability. Fidelity will maintain traditional book-entry records as the official ownership ledger, with a transfer agent reconciling distributed record transactions with these records on a daily basis.

Cynthia Lo Bessette, Head of Fidelity Digital Asset Management, expressed her enthusiasm about the initiative. “We are optimistic about tokenization,” she told Cointelegraph. “It has the potential to revolutionize financial services by enhancing efficiency and improving capital access across various markets.” She also alluded to tangible benefits, such as utilizing tokenized assets as collateral to simplify operations.

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How ‘OnChain’ Could Transform Treasury Fund Tracking

Fidelity Investments, with $5.8 trillion in assets under management, may expand the “OnChain” initiative to additional blockchains in the future. This adaptability reflects their long-term commitment to embracing distributed record technology. The firm already holds a significant position in the crypto domain, with its Fidelity Wise Origin BTC Fund managing $16.5 billion and its Ethereum Fund totaling $780 million, based on SoSoValue data.

The tokenized real-world asset (RWA) marketplace for Treasury products is flourishing, currently valued at $4.78 billion, according to rwa.xyz. Ethereum leads this space with $3.3 billion in tokenized RWAs, trailed by Stellar at $465.6 million. BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) holds a commanding position with $1.46 billion. Fidelity’s participation could further escalate competition in this sector.

Why Ethereum? Robbie Mitchnick, BlackRock’s head of crypto, recently referred to it as the “natural default” for tokenization during the Digital Asset Summit in New York on March 20, 2025. He lauded its decentralization, trustworthiness, and security—traits that Fidelity likely appreciates as well.

This is not Fidelity’s initial foray into blockchain technology. The company has investigated stablecoins and onchain credit, as noted in a 2024 interview with Lo Bessette on TheBlock. Adding “OnChain” to its offerings indicates a deeper commitment to merging traditional finance with digital currency technology. If successful, it could open doors for additional products, such as a Solana-based fund, as speculated by some users on X.

The overarching trend is evident: asset managers are embracing blockchain. The trading market for tokenized Treasury bills, bonds, and private credit has surged recently. Fidelity’s “OnChain” share class seeks to tap into this trend, providing a transparent and efficient alternative for investors. While it may not yet supplant traditional systems, it marks a significant stride toward a blockchain-driven financial landscape.

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• Fidelity is set to launch its “OnChain” share class on ETH by May 30, aiming to tokenize its $80 million Treasury Digital Fund for enhanced tracking.
• The “OnChain” class will monitor transactions on the distributed record, providing investors with clarity. Traditional records remain the official source and will be reconciled daily.
• With a $4.78 billion RWA market, Fidelity enters a competitive arena with BlackRock and others in tokenized Treasury products.
• Fidelity’s vast $5.8 trillion portfolio suggests potential expansion of “OnChain” to other blockchains, leveraging its $17 billion in crypto funds.

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The article All You Need to Know About Fidelity’s New ‘OnChain’ Share Class first appeared on 99Bitcoins.