Fidelity Pursues Authorization for Tokenized Investment Fund Launch
Fidelity, a leading crypto ETF issuer, has submitted an application to the SEC to launch a tokenized version of its U.S. money market fund, the Fidelity Treasury Digital Fund (FYHXX). The fund, which was launched last year and holds U.S. dollars and Treasury securities, would use the Ethereum blockchain to store ownership information. Although other public networks may be integrated in the future, a traditional transfer agent will maintain official records.
Fidelity aims to debut the tokenized fund on May 30, but the SEC has yet to approve the application. The proposed on-chain version of FYHXX is part of Fidelity's broader initiative to leverage blockchain technology for enhanced transparency and efficiency in the financial industry.
As of 2024, the real-world asset (RWA) sector has been one of the top success stories in the crypto industry, with an average return of 820%. This ranks third after AI and meme coins, according to CoinGecko. However, an $8.4 million hack on the Zoth RWA restaking protocol took place in March, highlighting potential security risks in this sector.
- Fidelity's goal in launching the tokenized version of the Fidelity Treasury Digital Fund (FYHXX) is to utilize Ethereum's blockchain technology for investing in finance, seeking enhanced transparency and efficiency in the digital asset market through the use of this technology.
- The proposed tokenization of the FYHXX fund, set to debut by Fidelity on May 30, is part of their strategic initiative to explore the potential applications of technology like Ethereum in the broader finance industry, aiming to contribute to the ongoing revolution in finance and investing.
