Fidelity, Managing $5.8 Trillion in Assets, Files with SEC for New Cryptocurrency Initiative
Initially, the OnChain class will run on the Ethereum (ETH) network, but the company has said it may explore additional blockchains in the future. Pending regulatory approval, the product is expected to go live on May 30
Fidelity Investments, a major US-based asset manager, has formally filed paperwork with the Securities and Exchange Commission (SEC) to introduce a blockchain-based, tokenized version of its US dollar money market fund.
According to a filing with the SEC, Fidelity intends to register an “OnChain” share class for its Fidelity Treasury Digital Fund (FYHXX) and utilize blockchain technology as a transfer agent. The fund, which launched late last year, consists of cash and U.S. Treasury securities. Initially, the OnChain class will run on the Ethereum (ETH) network, but the company has said it may explore additional blockchains in the future. Pending regulatory approval, the product is expected to go live on May 30.
The move comes as financial institutions around the world increasingly tokenize traditional assets such as government bonds, loans and investment funds. The process, known as tokenization of real-world assets (RWAs), aims to increase operational efficiency and facilitate instant, 24/7 payments.
