Fidelity Investments has submitted a filing to register a tokenized version of its US dollar money market fund on Ethereum, joining companies like BlackRock and Franklin Templeton in the blockchain tokenization space.

The filing, submitted on March 21 to the US securities regulator, said that "OnChain" will help track transactions for the Fidelity Treasury Digital Fund (FYHXX), an $80 million fund consisting almost entirely of US Treasury bills.

Although OnChain is still awaiting regulatory approval, Fidelity expects it to become operational on May 30.

Source: Securities and Exchange Commission

The OnChain share class aims to provide investors with transparency and verifiable tracking of FYHXX share transactions, although Fidelity will continue to use traditional book-entry records as the official ownership ledger.

“Even though the secondary recording of the OnChain class on a blockchain will not serve as the official ownership record, the transfer agent will reconcile blockchain transactions with the official records of the OnChain class daily,” Fidelity explained.

The $5.8 trillion asset manager also mentioned the possibility of expanding OnChain to other blockchains in the future.

In recent years, asset managers have increasingly looked to blockchain technology to tokenize Treasury bills, bonds, and private credit. The RWA tokenization market for Treasury products is currently valued at $4.78 billion, with BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) leading at $1.46 billion, according to rwa.xyz.

Source: rwa.xyz

Over $3.3 billion worth of RWAs have been tokenized on Ethereum, followed by Stellar at $465.6 million.

BlackRock’s crypto head, Robbie Mitchnick, recently said that Ethereum remains the "natural default answer" for traditional finance firms looking to tokenize RWAs on-chain.

"There was no question that Ethereum would be the blockchain on which we would begin tokenization, and that's not just a BlackRock thing; that's the obvious default answer."

“Clients clearly value decentralization, credibility, and security, which gives Ethereum a distinct advantage,” he remarked during the Digital Asset Summit in New York on March 20.