US asset manager Fidelity Investments has submitted documents to register a tokenized version of a blockchain-based US dollar money market fund with the aim of participating in the tokenized asset race.
According to a filing Friday with the Securities and Exchange Commission (SEC), the company is attempting to register a “Onchain” share class for the Fidelity Treasury Digital Fund (FYHXX) and using the blockchain as a transfer agent. Fyhxx holds cash and US Treasury securities, which was launched later last year.
The fund’s on-chain class currently uses the Ethereum (ETH) network, and the company could expand to other blockchains in the future, Filing said. Registration will be subject to regulatory approval and the product is expected to take effect on May 30th.
This filing is a process known as real world assets (RWAS) tokenization, where global banks and asset managers increasingly place traditional financial products such as government bonds, credits and blockchain rail funds. They pursue operational and efficiency improvements in 24-hour settlements and do so to pursue faster settlements.
With $5.8 trillion in managed assets, Fidelity is the latest traditional financial heavyweight to enter the fast-growing tokenized US financial space.
BlackRock (BLK) has partnered with Digital Asset Firm Securitize to launch a similar tokenized T-Build fund called Buidl in March last year, becoming a market leader with nearly $1.5 billion in assets.
The Franklin Templeton fund, the first chain money market product, has raised $689 million in assets since its debut in 2021.
Currently, the overall US Treasury market is worth $4.777 billion, an increase of almost 500% over the past year, according to RWA.xyz.
Fidelity is also one of the largest publishers of Spot Bitcoin and Ether Exchange-Traded Funds (ETFs) in the US, with FBTC 16.5 billion and FETHs of $780 million per Sosovalue data.
