Fidelity Enters Tokenized U.S. Treasuries Market with New Blockchain Fund

Boston -based Fidelity Investments, managing $5.8 trillion in assets, filed with the SEC on Friday to register an "OnChain" share class of its Fidelity Treasury Digital Fund (FYHXX), aiming to offer a tokenized version of its U.S. dollar money market fund. The fund, which currently uses the Ethereum network, seeks to leverage blockchains as a transfer agent. The entire tokenized U.S. Treasury market is currently worth $4.77 billion, growing almost 500% over the past year. Blackrock's BUIDL fund leads the market with nearly $1.5 billion in assets, while Franklin Templeton's fund holds $689 million since its 2021 launch. Fidelity also manages $16.5 billion in its spot Bitcoin ETF (FBTC) and $780 million in its Ether ETF (FETH). The product is expected to become effective on May 30, pending regulatory approval.