Fidelity Investments, a US-based investment giant, has entered the tokenized asset space by accelerating its steps towards blockchain-based financial products. The company applied to the SEC to register a tokenized version of its US dollar money market fund that will operate on the Ethereum network.

The latest financial giant to join the rapidly growing tokenized asset market is Fidelity Investments. The company filed with the US Securities and Exchange Commission (SEC) to register a blockchain-based version of its US dollar money market fund. According to the documents submitted by Fidelity, the fund’s “OnChain” share class will operate on the Ethereum network and may expand to other blockchain platforms in the future. If regulatory approval is obtained, the product is expected to be launched on May 30.

Fidelity’s move is seen as part of an increasing trend in the global finance sector to move traditional assets onto blockchain infrastructure. Major banks and asset managers aim to achieve operational efficiency in transaction processes and benefit from 24/7 payment capabilities by transferring 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 (RWA)” in the financial world.

Fidelity manages a total asset value of $5.8 trillion. By entering the tokenized US Treasury securities market, the company aims to capitalize on the growing opportunities in this area. Tokenized money market funds have grown by about 500% in the past year, reaching a market value of $4.8 billion. BlackRock, the biggest contributor to this growth, partnered with digital asset firm Securitize to launch a tokenized Treasury bond fund called BUIDL in March 2024, currently managing $1.5 billion in assets, positioning itself as a leader in the industry.

Another major player pioneering tokenized money market funds is Franklin Templeton. The chain-based money market fund launched by the company in 2021 has accumulated $689 million in assets to date. According to RWA.xyz data, the tokenized US Treasury securities market has now reached a size of $4.77 billion. With increasing investor interest, it is expected to further expand in the near future.

Fidelity is not limited to Treasury securities 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, establishing itself as a major player in crypto-based exchange-traded funds.