The post Fidelity Launches Ethereum-Powered Fund in Tokenized Treasury Market appeared on BitcoinEthereumNews.com.

Key Takeaways: Fidelity plans to launch a tokenized dollar fund on Ethereum by May 30. The move signals growing institutional interest in asset tokenization. In the last year, the tokenized U.S. Treasury market grew by nearly 500%. The Boston-based financial services giant Fidelity Investments, which oversees $5.8 trillion in assets, is getting ready to dive into the world of tokenized assets. The firm has filed with the Securities and Exchange Commission (SEC) to introduce an “OnChain” share class for its Fidelity Treasury Digital Fund (FYHXX), built on the Ethereum blockchain. If successful, it would position Fidelity among the first big asset managers to offer an on-chain money market fund of this size, with a targeted launch date of May 30. This initiative aligns with the firm’s broader strategy to integrate blockchain technology into traditional financial instruments, providing investors with more efficient and transparent investment opportunities. Growing Institutional Interest in Tokenization According to rwa.xyz, the market has surged to an estimated value of roughly $4.77 billion, representing an almost 500% increase. The phenomenon demonstrates a transition of institutional participants from passively observing to actively engaging in the market. This shift highlights the increasing confidence among financial institutions in blockchain’s potential to streamline asset management and enhance liquidity. Advantages of Tokenized Treasuries Tokenization converts traditional assets, including U.S. Treasuries, into blockchain-based digital tokens, which offer several advantages, such as: Quicker Settlements: Blockchain enables faster transaction settlements compared to traditional systems. 24/7 Trading: Digital assets don’t have market hours, allowing continuous trading. Fewer Middlemen: The use of Blockchain decreases the need for middlemen, which can reduce costs. Additionally, tokenized assets can improve portfolio diversification, offering investors access to a broader range of financial instruments with enhanced flexibility. Fidelity will use Ethereum as the default blockchain for FYHXX. The firm also hinted at the…

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Filed under: News - @ March 24, 2025 8:27 am