Fidelity Investments Enters RWA Market with On-Chain Treasury Digital Fund

Fidelity Investments has filed with the SEC to list an on-chain class of its Treasury Digital Fund, marking its entry into the real-world assets (RWA) market. The filing, submitted on Friday, reveals the fund will utilize the Ethereum blockchain, with potential future expansion to other layer-one networks. The Treasury Digital Fund, trading under the ticker FYHXX on the NYSE, primarily invests in short-term U.S. Treasuries and cash, allocating at least 80% of its assets to treasuries. The on-chain class shares may eventually allow peer-to-peer trading on the blockchain or secondary markets, although no agreements are currently in place. Fidelity's Head of Digital Asset Management, Cynthia Lo Bessette, stated that tokenization will improve customer experiences and drive transactional efficiencies. The move aligns with a broader trend, as RWA protocols recently surpassed $10 billion in total value locked, including BlackRock's BUIDL fund and Franklin Templeton's OnChain U.S. Government Money Fund.