Fidelity files Ethereum-based treasury fund ‘OnChain'

Fidelity Investments has filed with the U.S. Securities and Exchange Commission (SEC) to launch a blockchain-tracked share class called OnChain for its Fidelity Treasury Digital Fund (FYHXX), an $80 million money market fund holding U.S. Treasury bills.

The initiative, pending regulatory approval, aims to enhance transaction transparency using Ethereum’s (CRYPTO:ETH) blockchain while maintaining traditional ownership records.

The OnChain share class will provide verifiable tracking of transactions via Ethereum, though Fidelity’s transfer agent will reconcile blockchain records with official book-entry ledgers daily.

The filing clarifies that the Treasury bills themselves will not be tokenised—only the fund’s shares.

Fidelity joins BlackRock and Franklin Templeton in the rapidly expanding tokenised real-world assets (RWAs) market, which has grown nearly 500% over the past year.

The sector’s total value for U.S. Treasury products now stands at $4.78 billion, with Ethereum hosting $3.3 billion of these assets.

BlackRock’s Robbie Mitchnick highlighted Ethereum’s dominance in RWA tokenisation, calling it the “natural default answer” for traditional finance firms due to its decentralisation and security.

Fidelity’s OnChain class is expected to become effective on May 30, pending SEC approval, and may expand to other blockchains in the future. 

The move underscores growing institutional interest in blockchain’s operational efficiencies, though Fidelity’s approach balances innovation with regulatory compliance by retaining traditional ownership systems.

At the time of reporting, the Ethereum (ETH) price was $2,008.28.