Fidelity launches 'OnChain' Ethereum-tracked shares for Treasury money market fund

Fidelity Investments is launching an Ethereum-based blockchain share class called 'OnChain' for its Treasury money market fund, according to a recent regulatory filing with the U.S. Securities and Exchange Commission (SEC).

The asset management giant, which oversees approximately $5.9 trillion, will issue shares of its Fidelity Treasury Digital Fund (FYHXX) that are recorded on the Ethereum blockchain. The OnChain share class is designed to provide investors transparency and verifiable tracking of share transactions, although Fidelity will maintain traditional book-entry records as the official ownership ledger.

"The transfer agent maintains the official record of share ownership of the OnChain class in book-entry form. Ownership of the OnChain class will also be digitized on a public blockchain," the filing states. "Although the secondary blockchain record will not represent the official record, Fidelity’s transfer agent will reconcile blockchain transactions daily."

The fund itself primarily invests in cash and U.S. Treasury securities, aligning with standard money market fund regulations, aiming for income generation consistent with capital preservation and liquidity. However, the filing explicitly clarifies that the underlying Treasuries will not be directly tokenized; instead, blockchain technology is strictly applied at the share-recording level.

This initiative places Fidelity alongside other major asset managers, including BlackRock and Franklin Templeton, in the rapidly expanding market of tokenized real-world assets (RWAs). According to rwa.xyz data , the overall market for tokenized U.S. Treasuries is now valued at approximately $4.77 billion, with Ethereum boasting $3.3 billion worth of tokenized Treasuries alone.

BlackRock’s tokenized T-bill fund, BUIDL currently leads the sector with roughly $1.5 billion in assets. Franklin Templeton, which recently expanded its FOBXX fund to Solana , has gathered around $689 million in assets.

Fidelity’s blockchain-integrated fund shares are set to become effective on May 30 pending regulatory approval, underline a growing institutional appetite for integrating blockchain technology into traditional financial products.

A statutory trust called "Fidelity Solana Fund" was recently registered in Delaware , hinting that the asset manager may also be looking to create a Solana-based exchange-traded product.