The post Fidelity Plans Tokenized Fidelity Treasury Digital Fund Launch on Ethereum, Pending Regulatory Approval appeared on BitcoinEthereumNews.com.

Fidelity Investments is set to launch a tokenized version of its Treasury Digital Fund on Ethereum, marking a significant step towards blockchain integration in traditional finance. This development signifies Fidelity’s intent to enhance transparency and tracking for its $80 million US dollar money market fund, as it joins other major firms in the tokenization arena. According to Fidelity’s filing, “OnChain” will facilitate transaction tracking for the Fidelity Treasury Digital Fund (FYHXX), demonstrating the firm’s commitment to innovation in financial products. Fidelity is launching a tokenized Treasury Digital Fund on Ethereum to enhance transparency and tracking, joining major players in the blockchain tokenization space. Fidelity’s Tokenization Efforts: A New Era for Traditional Finance Fidelity’s initiative to introduce the OnChain share class represents a significant milestone for traditional financial firms venturing into the blockchain space. By tokenizing its US dollar Treasury fund, Fidelity aims to bridge the gap between conventional finance and digital assets. This effort mirrors similar actions taken by industry giants like BlackRock and Franklin Templeton, who are also exploring blockchain capabilities to optimize asset management. The Mechanics Behind OnChain The proposed OnChain class will offer verifiable transaction records while maintaining traditional ownership ledgers. Fidelity has emphasized that while blockchain will serve as a secondary tracking mechanism, they will continue to keep official records through traditional book-entry systems. This dual-recording approach is crucial in ensuring regulatory compliance while providing investors a transparent view of their holdings. The transfer agent’s role in reconciling blockchain transactions with official records on a daily basis further underscores Fidelity’s commitment to maintaining integrity within this innovative framework. Market Insights: The Growing Adoption of Tokenized Assets The launch of Fidelity’s tokenized fund is occurring within a rapidly expanding market for Real World Asset (RWA) tokenization, currently valued at approximately $4.78 billion. This market is primarily driven…

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Filed under: News - @ March 24, 2025 12:08 am