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fidelity Leaps into Tokenization Race with Ethereum-Based U.S. Treasury Fund, “OnChain”
Table of Contents
- 1. fidelity Leaps into Tokenization Race with Ethereum-Based U.S. Treasury Fund, “OnChain”
- 2. Fidelity’s Bold Move into Blockchain
- 3. Understanding “OnChain” and tokenization
- 4. How does Fidelity’s “OnChain” fund leverage blockchain technology to enhance investor experience?
- 5. Interview: Dr.Anya Sharma on Fidelity’s Ethereum-Based “OnChain” Fund
- 6. Introduction
- 7. Understanding “OnChain” and Tokenization
- 8. Implications & Future of Asset Tokenization
- 9. Challenges and Opportunities
- 10. Reader Interaction
By Archyde News Team | published March 24, 2025
Fidelity’s Bold Move into Blockchain
Boston, MA – In a meaningful advancement for the intersection of customary finance and blockchain technology, Fidelity Investments has officially filed to register a tokenized version of it’s U.S. dollar money market fund on the Ethereum blockchain. This move, revealed in a March 21, 2025, filing with the Securities and Exchange Commission (SEC), positions fidelity alongside industry giants like BlackRock and Franklin Templeton in the burgeoning asset tokenization arena.
The initiative, dubbed “OnChain,” is designed to enhance the transparency and traceability of transactions within the Fidelity Treasury Digital Fund (FYHXX), an $80 million fund primarily composed of U.S. Treasury bills.According to the SEC filing, “OnChain” seeks to provide a secondary, verifiable record of share transactions, complementing Fidelity’s existing traditional book-entry system.
While regulatory approval for “OnChain” is still pending, Fidelity anticipates an effective date of May 30. This development underscores a growing trend among asset managers to leverage blockchain technology for increased efficiency and investor confidence.
Fidelity’s filing to register a tokenized version of the Fidelity Treasury Digital Fund.
Understanding “OnChain” and tokenization
The core function of “OnChain” is to create a parallel, blockchain-based record of transactions for the FYHXX fund.This means that while Fidelity will maintain its traditional records as the official ledger, the “OnChain” system will offer a obvious and verifiable way for investors to track their share activity.
Although the secondary recording of the OnChain class on a blockchain will not represent the official record of ownership, the transfer agent will reconcile the secondary blockchain transactions with the official records of the OnChain class on at least a daily basis.
Crucially, Fidelity has clarified that the U.S. Treasury bills themselves will *not* be directly
How does Fidelity’s “OnChain” fund leverage blockchain technology to enhance investor experience?
Interview: Dr.Anya Sharma on Fidelity’s Ethereum-Based “OnChain” Fund
published March 24, 2025
Introduction
Archyde: Welcome, Dr. Sharma.Fidelity’s recent SEC filing to launch “OnChain,” a tokenized U.S. Treasury fund on Ethereum, is making waves. As a leading expert in blockchain and financial innovation, your insights are invaluable.
Dr. Sharma: Thank you for having me. It’s an exciting development indeed.
Understanding “OnChain” and Tokenization
Archyde: Can you elaborate for our readers on what “OnChain” actually *is* and why Fidelity is choosing to tokenize its U.S. Treasury fund?
Dr. Sharma: Essentially, “OnChain” is a supplementary, blockchain-based record of transactions for Fidelity’s existing Treasury fund. Fidelity wants to leverage blockchain’s clarity and traceability. This second record is designed to enhance investor confidence and efficiency, providing a verifiable audit trail.
Archyde: So, it’s not tokenizing the underlying U.S. Treasury bills themselves, but the shares of the fund, correct?
Dr. Sharma: Precisely.The U.S. Treasury bills remain in traditional financial instruments, with “onchain” tracking the share ownership.
Implications & Future of Asset Tokenization
Archyde: fidelity’s move mirrors similar initiatives by BlackRock and Franklin Templeton. What do you think this says about the broader trend of asset tokenization?
Dr. Sharma: It’s a clear signal that asset tokenization is becoming mainstream. The regulatory and operational frameworks are maturing, and significant players are seeing the benefits. Tokenization can improve liquidity, reduce costs, and make financial systems more accessible. if accomplished other financial institutions will likely follow.
Archyde: With the fund’s expected launch around May 30,2025,how do you see this impacting the average investor in the future?
Dr.Sharma: Investors will be benefit from more transparent ownership records, improved transaction speed, and potentially lower fees.
Challenges and Opportunities
Archyde: What potential challenges do you foresee, and what opportunities are in the upcoming future?
Dr. Sharma: Regulatory hurdles and scalability of the Ethereum network remain key considerations. There is a high need to educate the public about the advantages of blockchain and address any concerns about security and privacy. However, the opportunity to revolutionize how we manage and trade assets is enormous.
Archyde: Looking ahead, do you anticipate we’ll see more assets of all kinds tokenized?
Dr. Sharma: Absolutely. From real estate to commodities. I think we’ll see amazing innovation around the tokenization of the fund.
Archyde: Thank you again, for taking the time to share your expertise with us and our readers. Where does this place current decentralized finance (DeFi) applications?
dr. Sharma: It signals a strong shift toward the use of smart contracts and blockchain, and a need for centralized and decentralized financial processes to work together. I’m excited to see where it goes.
Reader Interaction
Archyde: We’d love to hear your thoughts. Will Fidelity’s “OnChain” fund encourage you to explore tokenized assets? Share your opinions in the comments below!
