Fidelity Investments has filed a request with the U.S. Securities and Exchange Commission (SEC) to introduce a tokenized share class for its blockchain-based U.S. dollar money market fund.
The proposal seeks approval to launch an “OnChain” share class of the Fidelity Treasury Digital Fund (FYHXX), which holds cash and U.S. Treasury securities.
Currently, the fund operates on the Ethereum (ETH) blockchain, with potential plans to expand to other networks. If approved, the tokenized fund could go live on May 30, 2025.
Fidelity’s initiative reflects a broader trend among financial institutions looking to leverage blockchain technology for traditional financial products, improving efficiency and transaction speed.
Franklin Templeton was among the first to explore this space; it launched its on-chain money market fund (FOBXX) in 2021. Since then, major players like JPMorgan and BlackRock have followed suit. JPMorgan introduced a tokenized U.S. Treasury bond fund in 2023, while BlackRock partnered with Securitize in March 2024 to launch BUIDL, a tokenized U.S. Treasury bill fund, which has now surpassed $1 billion in assets under management.
According to rwa.xyz, tokenized U.S. Treasury debt ranks as the second-largest category of tokenized real-world assets (RWA), with a market capitalization of $4.8 billion, behind private credit funds at $12.2 billion.
Meanwhile, Robinhood CEO Vladimir Tenev has advocated for tokenization to democratize investment access, allowing retail investors to participate in high-value private companies. He argues that blockchain-based assets could simplify trading and bridge the gap between accredited investors and the public, though he acknowledges the need for clear regulatory frameworks.
Notably, Coinbase has submitted a detailed proposal to the SEC urging for clearer crypto regulations. In a March 20, 2025, blog post, the exchange recommended classifying certain digital assets as commodities and clarifying the regulatory treatment of tokenized securities.
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