Fidelity Investments has filed with the U.S. Securities and Exchange Commission (SEC) to launch the Fidelity Treasury Digital Fund, an institutional-focused money market fund that will use blockchain technology to record share ownership while investing primarily in U.S. Treasury securities.
Fidelity Seeks SEC Approval for Ethereum-Integrated US Treasury Money Market Fund Hosted
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Fidelity’s Proposed Fund Uses Ethereum Blockchain for Secondary Share Recording
The fund, detailed in a March 21, 2025, preliminary prospectus, seeks to provide high current income while preserving capital and liquidity. It will invest at least 99.5% of its assets in cash and U.S. Treasury securities, with 80% directly in Treasuries, aligning with standard money market fund regulations under the Investment Company Act of 1940. Unlike crypto-focused products, the fund explicitly states it will not invest in digital assets.
Fidelity’s innovation lies in its onchain share class, which will use the Ethereum blockchain as a secondary ledger to track ownership. Daily reconciliations will ensure consistency between traditional book-entry records and blockchain data. Shareholders will access balances via blockchain wallets managed by Fidelity’s transfer agent, though private keys will remain under the company’s control to mitigate security risks.
The filing highlights a 0.25% annual management fee, reduced to 0.20% through August 2026 via a contractual expense waiver. Targeting institutional investors, the fund requires a $1 million minimum initial investment, though this could be waived. Purchases and redemptions will be processed through Fidelity’s platform, with same-day settlements via wire transactions.
This move places Fidelity among traditional finance giants like Blackrock and Franklin Templeton redefining real-world-asset ( RWA) tokenization. The filing acknowledges risks, including potential blockchain network delays, regulatory shifts, and cybersecurity threats, but emphasizes Ethereum’s proof-of-stake (PoS) consensus mechanism as a safeguard.
The SEC is expected to review the filing ahead of a proposed May 30, 2025, effective date. If approved, the fund would mark Fidelity’s latest blockchain integration effort, following its bitcoin custody services, spot bitcoin and ethereum exchange-traded funds (ETFs), and prior digital asset initiatives. Since March 2024, tokenized Treasuries have expanded at a staggering pace, ballooning 566% over the past year.
