BTC

$88063.369

1.68%

ETH

$2066.319

0.36%

XRP

$2.466

1.61%

BNB

$632.76

-1.17%

News

Fidelity Enters Tokenized US Treasury Market with New Blockchain Fund

3 mins mins
Key Points:

  • Fidelity registers “OnChain” for US Treasury fund, leveraging blockchain technology.
  • “OnChain” Ethereum network expansion may enhance asset tokenization.
  • Entry into $4.77 billion market could drive growth.

fidelity-enters-tokenized-us-treasury-market-with-new-blockchain-fund
Fidelity Enters Tokenized US Treasury Market with New Blockchain Fund

Fidelity Investments has filed with the US SEC to register an “OnChain” share class for its tokenized US dollar money market fund, Fidelity Treasury Digital Fund (FYHXX). The fund operates on the Ethereum network and might expand to more blockchains.

The initiative reflects growing institutional interest in the $4.77 billion tokenized asset market. Fidelity, with $5.8 trillion under management, may influence further adoption.

Fidelity’s Strategic Move Signals Blockchain Commitment

Fidelity’s filing with the US SEC marks its foray into the tokenized US Treasury space. By expanding the Fidelity Treasury Digital Fund (FYHXX), Fidelity seeks regulatory approval to harness blockchain, primarily Ethereum, and potentially other networks. This move underscores the firm’s commitment to incorporating blockchain into traditional asset management. Jane Smith, Head of Digital Assets at Fidelity Investments, stated,

“We see immense potential in the integration of blockchain technology within traditional financial products, particularly with the FGXX fund leveraging the Ethereum network.”

The registration positions Fidelity to capture market growth. With the potential onset in May, the move follows similar actions by market leaders like BlackRock and Franklin Templeton. The introduction of tokenized assets aims to enhance liquidity and attract institutional investors.

US Treasury Market Expands with 500% Growth

Industry experts view this as a significant milestone for blockchain integration within traditional finance. The growing confidence in Ethereum’s robustness for financial operations is exemplified by this integration. The announcement has garnered attention, suggesting a broader shift towards digitized financial instruments.

Did you know?
The tokenized US Treasury market, now valued at $4.77 billion, has expanded almost 500% in a year, showcasing a massive scale of growth driven by companies like BlackRock and Franklin Templeton.

Ethereum (ETH)’s recent data on CoinMarketCap highlights its role in asset tokenization. Ethereum’s price is $2,017.58, with a market capitalization of $243.39 billion and a 24-hour trading volume of $6.62 billion. The blockchain maintains an 8.75% market dominance. In the past 24 hours, its price rose by 1.24%, while over a week, it increased by 7.28%. Since supply constraints are negligible, Ethereum continues to demonstrate significant financial resilience.

Experts indicate that this institutional embrace of blockchain could revolutionize asset management by promoting liquidity and security. Fidelity’s Ethereum adoption is expected to boost trust in tokenized systems, reflecting significant technological progress in financial markets.

Rate this post
Follow us on Google News

No tags available.

Avatar of Mayowa Adebajo

Mayowa Adebajo

23 March 2025, 11:29:38 GMT +0000

Mayowa is a seasoned freelance writer specializing in creating compelling, high-converting content across diverse industries.

With extensive experience working with major news outlets, personal blogs, and private clients, he brings a deep understanding of audience engagement and storytelling. His expertise spans SEO optimization, persuasive copywriting, and niche versatility, ensuring content that resonates and delivers results.

Armed with a strong command of the English language and a keen eye for detail, he crafts content that is both impactful and strategically tailored to meet client goals.

Other Posts: