Fidelity to Launch a Tokenized Fund Based on the Ethereum Blockchain
Date: 2025-03-24 Author: Gabriel Deangelo Categories: BUSINESS
Fidelity, one of the leading companies in the cryptocurrency exchange-traded funds market, has filed documents with the SEC to launch a digital analogue of its money market fund — the Fidelity Treasury Digital Fund (ticker FYHXX). The new instrument is a tokenized version of an existing fund, the assets of which are represented by US dollars and securities of the US Treasury Department.
The digital fund will be built on the Ethereum blockchain. The on-chain model assumes that data on the ownership of the fund's shares will be stored in a decentralized network, ensuring transparency and quick verification of transactions. At the same time, the company does not rule out the possibility of switching to other public blockchains in the future, if this proves more effective. Despite the use of blockchain technologies, Fidelity will continue to cooperate with a traditional transfer agent, which will maintain the official register of the fund's shareholders.
The submitted documents indicate that the launch of the tokenized version is planned for May 30. However, the regulator's decision has not yet been received, and the application is under consideration.
Interest in real assets in digital form (RWA) continues to grow rapidly. According to CoinGecko, in 2024, RWA tokenization became one of the main trends in the crypto space, showing an average increase in profitability at 820%. This figure is second only to artificial intelligence tokens (growth of 2940%) and meme coins (2185%).
However, despite the overall positive trend, the industry is not immune to risks. In March of this year, it became known that the Zoth project, specializing in RWA restaking, was hacked. The damage amounted to about $8.4 million, which reminded us of the need for increased attention to security even within the framework of innovative solutions.
Fidelity's initiative to create a tokenized fund thus reflects the desire of traditional financial institutions to integrate into the Web3 space by using blockchain to optimize asset management and attract new investors.
