Fidelity, which manages 5.8 Trillion Dollars in assets, has applied to the SEC for a new Cryptocurrency initiative!

Fidelity Investments, a large asset manager based in the U.S., has officially filed a document with the Securities and Exchange Commission to introduce a blockchain-based, tokenized version of its U.S. dollar money market fund.

According to the application submitted to the SEC, Fidelity aims to register an "OnChain" share class for the Fidelity Treasury Digital Fund (FYHXX) and leverage blockchain technology as a transfer agent. Launched at the end of last year, the fund consists of cash and U.S. Treasury securities. Initially, the OnChain class will operate on the Ethereum (ETH) network, but the company indicated that it may explore additional blockchains in the future. The product, awaiting regulatory approval, is expected to go live on May 30.

This move comes as financial institutions worldwide increasingly tokenize traditional assets such as government bonds, loans, and investment funds. This process, known as the tokenization of real-world assets (RWAs), aims to enhance operational efficiency and facilitate instant payments at any time of the day.

Fidelity, which manages assets worth 5.8 trillion dollars, is joining other major financial companies entering the tokenized U.S. Treasury markets. BlackRock, in collaboration with digital asset firm Securitize, launched a similar tokenized Treasury bond fund called BUIDL in March 2023 and has since become the market leader with approximately 1.5 billion dollars in assets, according to rwa.xyz. Another early mover in this area, Franklin Templeton, launched the first on-chain money market fund that raised 689 million dollars in assets in 2021.