U.S.-based asset manager Fidelity Investments has filed paperwork to register a blockchain-based, tokenized version of its U.S. dollar money market fund, aiming to join the tokenized asset race.

According to a Friday filing to the U.S. Securities and Exchange Commission (SEC), the company seeks to register an “OnChain” share class of its Fidelity Treasury Digital Fund (FYHXX) and use blockchains as transfer agent. FYHXX holds cash and U.S. Treasury securities and was launched late last year.

The OnChain class of the fund currently uses the Ethereum (ETH) network, and the firm may expand to other blockchains in the future, the filing said. The registration is subject to regulatory approval, with the product expected to become effective on May 30.

The filing happened as global banks and asset managers increasingly put traditional financial instruments such as government bonds, credit, and funds on blockchain rails, a process often referred to as tokenization of real-world assets (RWAs). They do so to pursue operational and efficiency gains and faster, around-the-clock settlements.

Fidelity, with $5.8 trillion in assets under management, is the latest traditional financial heavyweight seeking to enter the fast-growing tokenized U.S. Treasuries space.

Blackrock (BLK), in partnership with digital asset firm Securitize, launched a similar tokenized T-bill fund last March called BUIDL and has become the market leader with nearly $1.5 billion of assets, rwa.xyz data shows.

Franklin Templeton’s fund, which was the first on-chain money market product, gathered $689 million in assets since its 2021 debut.

The entire tokenized U.S. Treasury market is currently worth $4.77 billion, growing almost 500% over the past year, per rwa.xyz.

Fidelity is also one of the largest issuers of spot bitcoin and ether exchange-traded funds (ETF) in the U.S., with its $16.5 billion FBTC and $780 million FETH, per SoSoValue data.

The US Securities and Exchange Commission (SEC) has delayed its decision to either approve or deny the request from Fidelity Investments to list Options on its spot Ethereum ETF product. According to the filing from the markets regulator, despite following the schedule designated to review the proposal, it still require additional time to decide the next move.

Options on Spot Ethereum ETF Demand Is Growing

As the market regulator noted in its filing, it will now look to May 2, 2025, as the tentative timeline to release its decision for the Options listing on spot Ethereum ETF. Already, it has asked the public for comments on the proposed filing and received the feedback as of January 21, 2025.

Fidelity’s push for Options on its spot Ethereum ETF product dates back to October 19, 2024. As reported, CBOE Exchange filed the proposed rule change to further diversify the firm’s interest in the ETF market.

There is growing interest in options products on ETH ETF products in general. Earlier in February, the CBOE BZX Exchange also filed a proposed rule change to list and trade options on Bitwise Ethereum Fund. BlackRock is also moving to list the offering, but neither of these proposals has gained a green light from the market regulator.

This is a developing story, please check back for updates!!!

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Godfrey Benjamin

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

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