Fidelity Files for Tokenized U.S. Dollar Money Market Fund

Asset manager Fidelity Investments filed with the SEC on Friday to register an "OnChain" share class of its Fidelity Treasury Digital Fund (FYHXX), aiming to tokenize U.S. dollar money market funds. The fund currently uses the Ethereum network and may expand to other blockchains. The product is expected to become effective on May 30, pending regulatory approval. This move aligns with the increasing trend of global banks and asset managers tokenizing real-world assets (RWAs) like government bonds. The entire tokenized U.S. Treasury market is currently worth $4.77 billion, growing almost 500% over the past year. Fidelity, managing $5.8 trillion in assets, joins Blackrock and Franklin Templeton in the tokenized U.S. Treasuries space.