Fidelity Investments Takes Bold Step in Blockchain with Tokenized USD Money Market Fund
Fidelity Investments is making a bold move in the blockchain space with its latest filing to the U.S. Securities and Exchange Commission (SEC) for a tokenized USD money market fund. Previously, Fidelity had filed for an Ethereum ETF offering staking rewards, as highlighted by CNF.
According to the SEC filing, the fund will introduce an “OnChain” share class recorded on Ethereum’s blockchain. While it will not invest directly in cryptocurrencies, 99.5% of its holdings will be allocated to U.S. Treasury securities and cash, ensuring a stable and highly liquid investment vehicle.
As stated in the Form N-1A filing with the SEC, Fidelity is seeking the registration of a tokenized version of its money market fund. The filing reads:
The OnChain class of the fund currently uses the Ethereum network as the public blockchain. In the future, the fund may use other public blockchain networks, subject to eligibility and other requirements that the fund may impose.
Currently, 80% of the fund’s assets are held in U.S. Treasury securities, with interest payments due upon maturity. Fidelity’s decision to use Ethereum highlights the network’s growing reputation as a preferred platform for financial tokenization.
Though the filing does not mention an immediate secondary market for these digital shares, it hints at the possibility of future peer-to-peer trading of shares on the blockchain. This could open the door for increased liquidity and accessibility in traditional investment markets.
Broader Implications for Finance and Ethereum’s Market Response
By tokenizing traditional assets, firms like Fidelity are paving the way for a more digital, decentralized financial system.
Further, WuBlockchain tweeted that the registration is subject to regulatory approval, with the product expected to go live on May 30. Fidelity currently manages $5.8 trillion in assets.
Fidelity has filed with the U.S. SEC to register a blockchain-based tokenized U.S. dollar money market fund, initially built on Ethereum with potential expansion to other blockchains. The registration is subject to regulatory approval, with the product expected to go live on May…
— Wu Blockchain (@WuBlockchain) March 23, 2025
If successful, this initiative could encourage further blockchain adoption among institutional investors and set a precedent for future tokenized investment products.
The announcement of Fidelity’s filing has added to Ethereum’s institutional appeal and fueled ETH rally. According to Coin Market Cap data, at the time of writing, ETH is trading at approximately $2,045.60, with a 24-hour trading volume increase of 2.54% and a 7.68% increase over the past week. See an ETH price chart below.