Fidelity Investments submitted to register a tokenized version of the US Dollar Money Market Fund on Ethereum.
Fidelity's March 21 filing with U.S. securities regulators said “on-chain” would help track transactions at the Fidelity Department of the Treasury Digital Fund (FYHXX).
Onchain has pending regulatory approval, but is expected to come into effect on May 30, Fidelity said.
Fidelity submission to register a tokenized version of the Fidelity Ministry's Digital Fund. sauce: Securities and Trade Commission
The Onchain Share class aims to provide investors with transparency and verifiable tracking in Fyhxx stock trading, but Fidelity maintains traditional bookkeeping records as officially owned ledgers.
“The secondary records of the Onchain class on the blockchain do not represent official ownership records, but the transfer agent coordinates the official records of the Onchain class with secondary blockchain transactions at least daily.”
Fidelity said the US Treasury bill would not be directly tokenized.
The $5.8 trillion asset manager said it could potentially expand the on-chain to other blockchains in the future.
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Asset managers have increasingly changed to blockchain over the past few years to tokenize Treasury bills, bonds and private credit.
According to RWA.xyz, the RWA tokenization market for financial products is currently valued at $4.788 billion, up from $1.46 billion, led by the BlackRock USD Institutional Digital Liquitidity Fund (BUIDL).
Market capitalization of blockchain-based financial products. sauce: rwa.xyz
More than $3.3 billion in RWA has been tokenized on the Ethereum Network, followed by $465.6 million in Stellar.
BlackRock's Crypto Head Robbie Mitchinick recently said that Ethereum remains a “natural default answer” for TradFi companies seeking tokenize RWAS ONCHAIN.
“There was no doubt that the blockchain that started to tokenize was Ethereum. It's not just blacklock, it's the natural default answer.”
“Clients clearly choose to value decentralization and value reliability and security. That's a huge advantage that Ethereum continues to have,” he said at the Digital Assets Summit in New York on March 20th.
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