Fidelity Investments has officially stepped into the blockchain tokenization arena with a new SEC filing that details plans to tokenize its US dollar money market fund using Ethereum.

The March 21 filing with the US Securities and Exchange Commission (SEC) outlines the firm’s proposal to use an “OnChain” share class to record transactions for the Fidelity Treasury Digital Fund (FYHXX) — an $80 million fund made up almost entirely of short-term US Treasury bills.

According to the filing, the OnChain shares will exist alongside traditional book-entry records and will be maintained by Fidelity’s transfer agent. While the blockchain-based ledger is not the official record of ownership, it provides a digital, cryptographically secure way to mirror and track fund transactions. The system is designed to reconcile with official records on a daily basis.

Fidelity’s move mirrors similar initiatives from asset management giants BlackRock and Franklin Templeton, who are also exploring blockchain infrastructure for the tokenization of traditional financial assets. 

Franklin Templeton was one of the first to launch a tokenized money market fund on the Stellar blockchain, later expanding to Polygon. BlackRock, meanwhile, has recently made headlines with its tokenized fund offerings aimed at institutional investors.

The fund’s use of Ethereum — the world’s second-largest blockchain by market cap — signals growing confidence in public blockchains as secure, transparent environments for managing real-world assets (RWAs). Ethereum’s compatibility with smart contracts allows for programmable transactions, potentially paving the way for more efficient fund management, real-time auditing, and even cross-platform interoperability in the future.

While the blockchain aspect adds a modern edge, the investment approach remains conservative. FYHXX primarily invests in US Treasury securities and aims to preserve capital and maintain high liquidity — a staple goal for money market funds.

Fidelity acknowledged in the filing that blockchain technology carries risks, including the potential for bugs, unauthorized access, and regulatory uncertainties. However, the firm emphasized that internal controls and regular reconciliation would mitigate these concerns.

The fund's OnChain class is currently open to certain institutional investors with a minimum initial investment of $1 million, although Fidelity may adjust these thresholds.