Asset management giant Fidelity Investments has taken a significant step toward integrating blockchain technology into traditional finance by filing with the U.S. Securities and Exchange Commission (SEC) to launch a tokenized share class of its Fidelity Treasury Money Market Fund (FYHXX).
The new “OnChain” share class would allow investors to access a blockchain-based version of the fund, which holds cash and U.S. Treasury securities. According to the filing, the fund will initially operate on the Ethereum network, with the potential to expand to other blockchains in the future. If approved, the tokenized fund is expected to go live on May 30, 2025.
A Move Toward Efficiency and Transparency
The filing reflects a growing trend among major financial institutions seeking to leverage blockchain technology to enhance efficiency, transparency, and settlement speed in traditional financial products. Tokenization enables assets like bonds and money market funds to be represented digitally on public or permissioned blockchains, offering real-time visibility and faster transaction processing.
Fidelity’s initiative follows in the footsteps of Franklin Templeton, which launched the first on-chain money market fund (FOBXX) on the Stellar blockchain in 2021 and later expanded to Solana. Now, with Fidelity entering the space, the race to modernize asset management through blockchain is accelerating.
Industry Momentum Builds
Other financial titans such as JPMorgan and BlackRock have also moved into the tokenized treasury market. In 2023, JPMorgan unveiled a tokenized U.S. Treasury bond fund, while BlackRock, in partnership with Securitize, launched its BUIDL fund in March 2024 — a tokenized U.S. Treasury bill fund that recently surpassed $1 billion in assets under management.
According to data from rwa.xyz, tokenized U.S. Treasury debt has become the second-largest segment in the real-world asset (RWA) tokenization market, with a market capitalization of $4.8 billion, trailing only tokenized private credit, which holds $12.2 billion.
Fidelity’s Strategic Position
Fidelity’s proposal to launch an on-chain share class underlines its commitment to digital innovation and its long-term belief in blockchain’s transformative role in finance. The asset manager is already active in the crypto space through Fidelity Digital Assets, which provides custody and trading services for institutional clients.
If the SEC approves the filing, Fidelity will join a growing list of financial institutions pushing traditional asset management into the blockchain era — a shift that may redefine how investors interact with funds, treasuries, and other legacy financial instruments.
As tokenization continues to gain traction, Fidelity’s entry could further validate the model and expand investor access to blockchain-powered financial products.
