- Fidelity Investments has filed for an Ethereum-tracked Treasury Fund, “OnChain”.
- The firm will leverage blockchain technology to track ownership records and transactions.
- RWA.xyz values the RWA tokenization market at $4.78B, highlighting the opportunity it poses.
Fidelity Investments, managing approximately $5.9 trillion in assets, has filed with the SEC to launch an “OnChain” share for its Fidelity Treasury Digital Fund (FYHXX). The “OnChain” share class will record share transactions on the Ethereum blockchain, enhancing transparency and verifiability. Though Fidelity leverages blockchain technology to keep track of ownership records, the traditional book-entry records will remain the official ownership ledger, and daily reconciliation will ensure accuracy.
According to the filing, the fund would invest at least 99.5% of its assets in cash and U.S. Treasury securities, whose interest is exempt from state and local taxes. The fund would further invest a minimum of 80% in U.S. Treasury securities, ensuring a focus on capital preservation and liquidity. The filing is subject to regulatory approval, and the product is expected to go live on May 30, 2025.
Fidelity’s move follows other major asset managers, including BlackRock’s BUIDL fund and Franklin Templeton’s Franklin OnChain U.S. Government Money Fund (FOBXX). This demonstrates the growing interest in tokenization, particularly in the U.S. Treasury securities.
Related: SEC Reviews Fidelity, Franklin Spot ETH ETF Filings with Staking
Real-World Assets Tokenization Surge
As markets fluctuate and uncertainty continues, investors are constantly looking for the next big breakthrough, something that’s built to outpace the turbulence. Real-world asset tokenization (RWAs) bridges this gap between traditional finance and the expected security that blockchain promises through decentralization.
However, for years, regulators stayed away from crypto-related products since it was seen as risky. As a result, big firms switched their focus to AI technology. The scenario changed when Trump came back to the White House with pro-crypto policies.
The market for tokenized funds has expanded sixfold, with an 85% increase over the past year. According to rwa.xyz, it is currently valued at $4.78 billion, proving that RWA tokenization is becoming the industry’s biggest opportunity in combining infrastructure and finance.
Multiple reports signal that massive growth ranging from $50 billion to $30 trillion is yet to be unlocked by the RWAs, and there’s no doubt that Fidelity sees this as a green light to accelerate its plan. Finally, Fidelity’s entry into the tokenized U.S. Treasury market could attract investors seeking blockchain-based financial services, ultimately resulting in strong growth in the blockchain and crypto industry.
