Fidelity Leverages Ethereum for Tokenized Treasury Fund

Fidelity Leverages Ethereum- Fidelity Follows BlackRock’s Lead with Ethereum Tokenization

Fidelity Leverages Ethereum– Fidelity Investments is making a significant move into the blockchain space by filing to register a tokenized version of its US dollar money market fund on Ethereum. This puts the company alongside major players like BlackRock and Franklin Templeton, who have also embraced blockchain tokenization for financial products.

Fidelity’s March 21 filing with the US Securities and Exchange Commission (SEC) revealed plans for a new blockchain tool called “OnChain.” This platform will track transactions for the Fidelity Treasury Digital Fund (FYHXX), an $80 million fund composed primarily of US Treasury bills. While OnChain is awaiting regulatory approval, Fidelity has indicated that it expects the platform to be operational by May 30.

Over the past few years, asset managers have increasingly turned to blockchain technology to tokenize Treasury bills, bonds, and private credit. This trend reflects the growing recognition of blockchain’s ability to bring more efficiency and transparency to traditional financial products.

According to rwa.xyz, the tokenization market for real-world assets (RWAs) in Treasury products is currently valued at $4.78 billion. The BlackRock USD Institutional Digital Liquidity Fund (BUIDL) leads this market with a valuation of $1.46 billion. Ethereum dominates the RWA tokenization space, with over $3.3 billion worth of tokenized RWAs, followed by Stellar with $465.6 million.

Ethereum: The Blockchain of Choice for Tokenization

BlackRock’s head of crypto, Robbie Mitchnick, recently emphasized Ethereum’s role as the leading blockchain for tokenization. He said, “There was no question that the blockchain we would start our tokenization on would be Ethereum. Clients clearly value decentralization, credibility, and security — all advantages that Ethereum continues to offer.”

As more asset managers follow suit, Ethereum continues to be the go-to blockchain for tokenizing real-world assets, thanks to its well-established security features and widespread credibility in the financial sector.

In conclusion, Fidelity’s foray into tokenization is part of a broader trend where traditional financial institutions increasingly turn to blockchain for efficiency and transparency in managing Treasury-related products.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.