A U.S.-based asset management firm has submitted documents to register a blockchain-driven, tokenized version of its dollar money market fund, with the intention of entering the competitive tokenized asset market.
In a recent filing with the U.S. Securities and Exchange Commission (SEC), the company announced its plans to introduce an “OnChain” share class of its Fidelity Treasury Digital Fund (FYHXX) and utilize blockchain technology as a transfer agent. The FYHXX fund, which focuses on cash and U.S. Treasury securities, was initiated late last year.
The OnChain share class will initially operate on the Ethereum (ETH) network, although the firm indicated potential for expansion to other blockchains in the future, according to the filing. This registration is contingent upon receiving regulatory approval, with an expected activation date of May 30.
This move comes as financial institutions around the globe are increasingly placing traditional financial assets, such as government bonds and credit, onto blockchain technology, a trend commonly known as the tokenization of real-world assets (RWAs). The objective is to enhance operational efficiency and facilitate quicker, round-the-clock settlement processes.
This asset manager, holding approximately $5.8 trillion in assets under management, is the latest traditional finance giant attempting to tap into the expanding market for tokenized U.S. Treasuries.
Another major player, in collaboration with a digital asset company, launched a comparable tokenized T-bill fund last March, called BUIDL, and has emerged as the leader in this market with nearly $1.5 billion in assets, according to recent data.
Additionally, Franklin Templeton’s fund, recognized as the first on-chain money market product, has attracted $689 million in assets since its inception in 2021.
The overall market for tokenized U.S. Treasuries is currently valued at approximately $4.77 billion, showing a remarkable growth of nearly 500% over the past year, based on current statistics.
This firm is also one of the leading issuers of spot bitcoin and ether exchange-traded funds (ETFs) in the U.S., with its assets totaling $16.5 billion for bitcoin and $780 million for ether, as per available data.