Fidelity Files Application to SEC for Fund Using 6 Trillion Dollar Ethereum! - Coin Bulletin

Fidelity Investments announced in its latest regulatory filing with the SEC ( that it has introduced 'OnChain', a blockchain share class based on Ethereum.

Fidelity, managing approximately 5.9 trillion dollars in assets, is launching a new initiative to record shares of the Fidelity Treasury Digital Fund )FYHXX( on the Ethereum blockchain. The 'OnChain' share class aims to provide investors with transparent tracking and verification of share transactions. However, Fidelity will continue to maintain traditional ledger records as the official ownership record.

Fidelity's application includes the statement: "The transfer agent officially maintains the ownership record of the OnChain class in the form of a book entry. The ownership of the OnChain class will also be digitized on a public blockchain." However, this secondary record on the blockchain will not reflect the official record, but the transfer agent of Fidelity will reconcile blockchain transactions on a daily basis.

Fidelity's innovative approach aims to use blockchain technology at the level of share registries. The fund aims to generate income by investing in cash and U.S. Treasury bonds while prioritizing capital preservation and liquidity. However, the underlying Treasury bonds will not be directly tokenized; blockchain technology will only be used for share registries.

This development positions Fidelity alongside major asset managers like BlackRock and Franklin Templeton to participate in the tokenized real-world assets )RWA( market. According to rwa.xyz data, the market for tokenized U.S. Treasury bonds is currently valued at approximately $4.77 billion, while the total value of tokenized Treasury bonds on Ethereum is $3.3 billion.

Fidelity’s blockchain-integrated fund shares will become operational on May 30, subject to regulatory approval. This development highlights growing institutional interest in integrating blockchain technology into traditional financial products. Additionally, Fidelity’s newly registered legal trust named “Fidelity Solana Fund” in Delaware also indicates the company’s plans to create a Solana-based exchange-traded product.