Fidelity Investments is entering the blockchain arena with a plan to tokenize its $80 million Treasury fund on Ethereum, aiming for greater transparency and transaction tracking. The move positions Fidelity alongside major players like BlackRock and Franklin Templeton in the fast-growing tokenized assets space.
‘OnChain’ Fund Targets May 30 Launch
In a filing with the U.S. Securities and Exchange Commission on March 21, Fidelity revealed plans to launch a blockchain-based share class called “OnChain” for its Fidelity Treasury Digital Fund (FYHXX). If approved, the fund is expected to go live on May 30.
The goal of OnChain is to offer investors verifiable transaction tracking and improved transparency, leveraging Ethereum’s decentralized infrastructure. However, Fidelity clarified that while transactions will be recorded on the blockchain, the official ownership records will still be maintained through traditional book-entry systems.
“Although the secondary recording of the OnChain class on a blockchain will not represent the official record of ownership, the transfer agent will reconcile the secondary blockchain transactions with the official records on at least a daily basis,” Fidelity stated.
No Direct Tokenization of Treasury Bills
Fidelity emphasized that the underlying U.S. Treasury bills in FYHXX will not be directly tokenized. Instead, the blockchain will support transparency and operational efficiency by recording transaction data.
With $5.8 trillion in assets under management, Fidelity also noted potential plans to expand OnChain to other blockchain networks in the future, depending on investor interest and evolving infrastructure.
Ethereum Leads RWA Tokenization
Tokenization of real-world assets (RWAs) like Treasury bills and bonds has gained momentum among institutional asset managers. According to data from rwa.xyz, the market for tokenized U.S. Treasury products has reached $4.78 billion. BlackRock’s BUIDL fund leads the pack with $1.46 billion.
Ethereum remains the dominant blockchain for these tokenized assets, hosting over $3.3 billion worth of RWAs. Stellar trails behind with approximately $465.6 million.
At the Digital Asset Summit in New York on March 20, BlackRock’s Head of Crypto, Robbie Mitchnick, underscored Ethereum’s continued dominance.
“There was no question that the blockchain we would start our tokenization on would be Ethereum,” Mitchnick said. “Clients clearly value decentralization, credibility, and security — and that’s a great advantage Ethereum continues to have.”
Fidelity’s entry adds further weight to the institutional push toward blockchain-powered finance.
