Fidelity Files Application to Register OnChain US Treasury Fund
Fidelity Investments, a brokerage firm and investment funds provider, has applied to register a tokenized version of its US dollar money market fund on Ethereum.
According to its March 21 filing with the US Securities and Exchange Commission (SEC), the new blockchain initiative, called “OnChain,” aims to track transactions of the Fidelity Treasury Digital Fund (FYHXX), an $80 million fund primarily invested in US Treasury bills.
If approved, OnChain will be launched on May 30, offering investors enhanced transparency and verifiable tracking of share transactions.
Fidelity will maintain traditional book-entry records as the official ownership ledger, clarifying that while OnChain will record transactions on the blockchain, these will not serve as the official ownership records.
The transfer agent will reconcile blockchain transactions with official records daily. It’s important to note that US Treasury bills themselves will not be tokenized by Fidelity.
