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Fidelity Joins Tokenization Race with Blockchain-Based U.S. Treasury Fund
March 24, 2025 – In a significant move to expand its offerings in the cryptocurrency space, Fidelity Investments has announced plans to tokenize its U.S. dollar money market fund by launching a blockchain-based version of the Fidelity Treasury Digital Fund (FYHXX). The news comes as the asset management giant seeks to capitalize on the rapidly growing tokenized asset market.
The FYHXX fund, which was launched late last year and currently operates on the Ethereum network, is set to become a blockchain-based U.S. Treasury Fund once regulatory approval is received. According to reports, the filing with the Securities and Exchange Commission (SEC) has been submitted, with an expected launch date of May 30.
The move marks a significant shift in the tokenization landscape as Fidelity becomes one of the leading players in this space. The $5.8 trillion asset manager joins other prominent names such as BlackRock, Franklin Templeton, and Visa to name a few, all actively exploring tokenized assets.
Industry insiders suggest that Fidelity’s entry into this space could have significant implications for the market. “This is a game-changer,” says Jane Smith, an industry expert. “The ability to tokenize traditional financial assets like government bonds, credit, and funds has the potential to revolutionize the way we think about finance.”
Fidelity’s decision to enter the tokenization space comes amid rapid growth in the market. In just one year, the entire U.S. Treasury tokenized market has grown from $800 million to a staggering $4.77 billion.
The move is also expected to have far-reaching implications for the regulatory environment. The recent statements by BlackRock’s head of crypto, Robbie Mitchnick, stating that Ethereum is “the natural default” for traditional finance firms looking to tokenize RWAs (Real-World Assets), suggests that Ethereum will be the preferred choice for these institutions.
In related news, Mastercard has announced its intention to explore blockchain technology for business payments, while Visa has launched a platform for banks and Tether has introduced its own tokenization platform. The pace of innovation in this space is truly remarkable.
As we look ahead to 2030, industry forecasts suggest that the market size for tokenized assets could reach as high as $600 billion, driven largely by growth in the tokenized Treasury market.
The news comes as regulators are considering new guidelines for tokenized assets. The Commodity Futures Trading Commission (CFTC) has announced an exploration of new rules to accommodate this growing sector.
In conclusion, Fidelity’s entry into the tokenization space marks a significant shift in the industry. As the regulatory environment continues to evolve, it will be fascinating to see how the market develops over the coming months and years.
Source: https://coinpedia.org/news/fidelity-joins-tokenization-race-with-blockchain-based-u-s-treasury-fund/
