TechFlow news — On March 22, global asset management giant Fidelity Investments filed an application with U.S. securities regulators to register a tokenized version of its U.S. dollar money market fund on the Ethereum blockchain, joining institutions such as BlackRock and Franklin Templeton in the blockchain tokenization race.
According to documents submitted by Fidelity to U.S. securities regulators on March 21, the tokenized product named "OnChain" will help track transactions of the Fidelity Treasury Digital Fund (FYHXX). The fund, with approximately $80 million in assets, is composed almost entirely of U.S. Treasury bills.
Although OnChain is still awaiting regulatory approval, Fidelity stated it expects the product to become effective on May 30. The OnChain share class aims to provide investors with transparency and verifiable tracking of FYHXX share transactions, though Fidelity will continue maintaining traditional book-entry records as the official ownership ledger.
Fidelity noted in the filing: "Although the secondary record of the OnChain class on the blockchain does not represent the official record of ownership, the transfer agent will reconcile blockchain transactions of the OnChain class with its official records at least daily." Fidelity also emphasized that the U.S. Treasury bills themselves will not be directly tokenized.
