Fidelity pioneers blockchain in traditional finance with Ethereum-tracked ‘OnChain’ fund shares.
In a notable move towards bridging traditional finance and distributed ledger technology, Fidelity Investments has unveiled plans for an Ethereum-based share class named “OnChain.”
This novel offering will be linked to Fidelity’s Treasury money market fund and will involve registering share transactions on the Ethereum blockchain.
This development, revealed in a recent regulatory filing, signals a major asset manager’s growing conviction in blockchain applications.
Fidelity Joins the Tokenized Real-World Asset (RWA) Wave
While Fidelity, which manages a substantial $5.9 trillion in assets, will retain conventional book-entry systems as the official record of ownership, the “OnChain” share class of the Fidelity Treasury Digital Fund (FYHXX) will also have its share movements immutably recorded on the Ethereum network.
This dual-record approach is primarily intended to boost transparency, allowing investors to verifiably monitor share transactions through blockchain technology.
The filing submitted to the U.S. Securities and Exchange Commission (SEC) elucidates this operational model: “The definitive record of share ownership for the OnChain class will remain within the book-entry system maintained by the transfer agent. Concurrently, details of OnChain class ownership will be digitized and anchored to a public blockchain.”
It further clarifies that although the blockchain ledger acts as a secondary record, “Fidelity’s transfer agent will conduct daily reconciliations of all transactional data across both the traditional and blockchain systems.”
Tokenization at Share Level, Not Underlying Assets
Franklin Templeton’s FOBXX fund, which has expanded its operations to the Solana blockchain, has accumulated assets of around $689 million.
Pending regulatory clearance, Fidelity’s blockchain-integrated fund shares are anticipated to become operational by May 30th.
This development underscores a strengthening trend among institutional investors toward integrating blockchain technology within traditional financial product structures.
In a further indication of its evolving blockchain strategy, Fidelity recently registered a statutory trust named “Fidelity Solana Fund” in Delaware.
This action suggests the asset management giant may be considering the launch of an exchange-traded product based on the Solana blockchain, broadening its range of blockchain-based financial instruments.
Also Read: New Fidelity Solana Fund Rumours
