US-based investment giant Fidelity Investments has accelerated its steps towards blockchain-based financial products by entering the tokenized asset field. The company applied to the SEC to register a tokenized version of the US dollar money market fund that will operate on the Ethereum network. Joining the rapidly growing tokenized asset market in recent years, the latest financial giant to participate is Fidelity Investments. The company applied to the US Securities and Exchange Commission (SEC) to register a blockchain-based version of the US dollar money market fund. According to the documents provided by Fidelity, the fund’s “OnChain” share class will operate on the Ethereum network and could expand to other blockchain platforms in the future. If regulatory approval is obtained, the product is expected to be launched on May 30th.

“REAL WORLD ASSETS ARE BEING TOKENIZED”
Fidelity’s move is considered part of an increasing trend in the global financial sector towards moving traditional assets to blockchain infrastructure. Major banks and asset managers aim to achieve operational efficiency in transaction processes and benefit from 24/7 payment opportunities by moving traditional financial instruments such as government bonds, credit products, and investment funds to the blockchain. This process is referred to as “Tokenization of Real World Assets (RWAs)” in the financial world.

FIDELITY LEADING THE INDUSTRY
Fidelity manages total assets worth $5.8 trillion. By entering the tokenized US Treasury bond market, the company aims to capitalize on the growing opportunities in this field. Tokenized money market funds have grown by approximately 500% in the past year, reaching a market value of $4.8 billion. BlackRock, which holds the largest share of this growth, partnered with the digital asset firm Securitize to launch a tokenized Treasury bond fund called BUIDL in March 2024. BlackRock’s product currently manages $1.5 billion in assets, making it a leader in the industry.

FRANKLIN TEMPLETON ACCUMULATED $689 MILLION IN ASSETS
Another major player pioneering tokenized money market funds is Franklin Templeton. The chain-up money market fund the company launched in 2021 has accumulated $689 million in assets to date. According to RWA.xyz data, the tokenized US Treasury bond market has now reached a size of $4.77 billion. With increasing investor interest, this field is expected to expand further in the future.

Fidelity is not limited to Treasury bonds in the tokenized asset space. According to SoSoValue data, the company is one of the largest issuers of spot Bitcoin ETF ($16.5 billion) and spot Ethereum ETF ($780 million) in the US, positioning itself as one of the largest crypto-based exchange-traded fund issuers.