RWA News: Fidelity Files For OnChain US Treasury Fund, Joining Asset Tokenization Race

Fidelity Files for OnChain US Treasury Fund, Entering Asset Tokenization Race

The volume of tokenized money market funds has increased sixfold in a year, reaching $4.8 billion. Currently, the product from BlackRock is the leader.

Christian Sandor | Edited by Sam Reynolds Updated Mar 23, 2025 7:57 AM UTC Published Mar 23, 2025 7:53 AM UTC

Key points:

• Fidelity Investments has filed to list a blockchain version of its U.S. dollar money market fund, kicking off a race for tokenized assets.
• The statement said the fund uses the Ethereum network and may expand to other blockchains. The product is expected to be available on May 30, pending regulatory approval.
• Fidelity, which manages $5.8 trillion in assets, has become the latest major financial institution to enter the booming market for tokenized U.S. Treasuries, which has grown nearly 500% in the past year.

US asset management company Fidelity Investments has filed paperwork to register a tokenized version of its blockchain-based money market fund, aiming to enter the tokenized asset race.

The company is seeking to register an “OnChain” share class for its Fidelity Treasury digital fund (FYHXX) and use blockchains as a transfer agent, according to a filing with the U.S. Securities and Exchange Commission (SEC) on Friday. FYHXX holds cash and U.S. Treasuries and launched late last year.

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The fund’s OnChain class currently runs on the Ethereum (ETH) network, and the company may consider expanding to other blockchains in the future, the filing states. The filing is subject to regulatory approval, and the product is expected to launch on May 30.

The filing comes as global banks and asset managers increasingly turn to blockchain technology to implement traditional financial instruments such as government bonds, loans and funds, a process known as real-world asset tokenization (RWA). They are doing so to gain operational advantages and faster, round-the-clock settlement.

Fidelity, which manages $5.8 trillion in assets, has become the latest traditional financial institution to enter the rapidly growing market for tokenized U.S. Treasuries.

According to rwa.xyz, Blackrock (BLK), in collaboration with digital asset management company Securitize, introduced a similar tokenized Treasury bill fund called BUIDL last March and took the lead in the market with about $1.5 billion in assets under management.

The Franklin Templeton Fund, which became the first money market product to use blockchain technology, has raised $689 million since its launch in 2021.

According to rwa.xyz, the current valuation of the entire tokenized US Treasury bond market is $4.77 billion, up 500% from last year.

Fidelity is also among the largest issuers of bitcoin and ethereum-based exchange-traded funds (ETFs) in the U.S., with $16.5 billion in FBTC and $780 million in FETH assets, according to SoSoValue.

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