Fidelity to Launch Ethereum-Based Share Class for Treasury Fund, Joining Tokenized Asset Trend

Fidelity Investments, managing approximately $5.9 trillion, is launching an Ethereum-based blockchain share class named 'OnChain' for its Treasury money market fund (FYHXX), according to a recent SEC filing. The fund shares, designed for transparency and verifiable tracking of share transactions, are set to become effective on May 30, pending regulatory approval. While Fidelity will maintain traditional book-entry records as the official ownership ledger, the 'OnChain' class will digitize ownership on the Ethereum blockchain, with daily reconciliation of blockchain transactions. This move aligns Fidelity with other major asset managers like BlackRock and Franklin Templeton in the tokenized real-world assets (RWAs) market, currently valued at approximately $4.77 billion, with Ethereum holding $3.3 billion in tokenized Treasuries.