Fidelity Seeks SEC Approval for Blockchain Money Market Fund
Fidelity Investments has taken a bold step into the blockchain world. The asset manager has filed with the U.S. Securities and Exchange Commission (SEC) to launch a blockchain-based share class for its U.S. dollar money market fund.
This new “OnChain” share class, part of the Fidelity Treasury digital Fund (FYHXX), will hold cash and U.S. Treasury securities. It currently uses the Ethereum network but may expand to other blockchains. If approved, the fund will start on May 30.
Fidelity’s move follows a growing trend among financial firms to use blockchain for traditional products. This technology promises faster and more efficient transactions. Franklin Templeton led the way in 2021 with its on-chain money market fund, FOBXX.
Other big names like JPMorgan and BlackRock have also joined in.JPMorgan launched a tokenized U.S. Treasury bond fund in 2023. In March 2024, BlackRock, with Securitize, introduced the BUIDL fund, which now manages over $1 billion.
Tokenized U.S. Treasury debt is now the second-largest type of tokenized real-world assets, with a market cap of $4.80 billion, according to rwa.xyz. This shows the growing importance of blockchain in finance.
