Fidelity joins the RWA battle, OnChain funds will be recorded on the Ethereum blockchain.

Asset management giant Fidelity ( will launch a money market fund called "OnChain" that invests in U.S. Treasury bonds and utilizes the Ethereum network to record the total number of circulating shares and share ownership.

OnChain initially only involves accounting, and investors need to have a blockchain wallet.

The fund will invest at least 99.5% of its total assets in cash and U.S. Treasury securities in accordance with Section 2a-7 of the Investment Company Act of 1940, with at least 80% of its assets invested in U.S. Treasury securities. The fund will not invest in any cryptocurrency stocks and will be offered to specific institutional investors who complete the application to the fund.

The fund's transfer agent maintains the official records of the OnChain class of equity in a bookkeeping format, which will also be recorded on the Ethereum public blockchain. Although the secondary record of the OnChain class on the blockchain does not represent the official record of ownership, the transfer agent will at least reconcile the secondary blockchain transactions with the official records of the OnChain class daily. Reconciliation involves maintaining matching bookkeeping records and blockchain records, recording the total number of circulating shares and the ownership of shares at any given time.

Potential investors must have a blockchain wallet, which the transfer agent will create and hold for them when the investor opens an account. However, the transfer agent will still maintain control over the wallet to correct any errors or unauthorized transactions on the blockchain used by its blockchain integration system.

Tokenized US Treasury market nearly 5 billion, led by BlackRock

This move will allow Fidelity to enter the rapidly expanding tokenized real-world asset )RWA( market alongside other major asset management firms such as BlackRock and Franklin Templeton. According to data from rwa.xyz, the overall market value of tokenized U.S. Treasury bonds is currently approximately $4.78 billion, with Ethereum accounting for tokenized Treasury bonds valued at $3.3 billion.

BlackRock's tokenized treasury bond fund BUIDL currently leads the industry with approximately $1.5 billion in assets. Franklin Templeton has recently expanded its FOBXX fund to Solana, which has now gathered nearly $700 million in assets.

However, this Fidelity government bond fund will not be directly tokenized; instead, blockchain technology will only be strictly applied at the share record level. This fund is expected to take effect on May 30 and is still awaiting regulatory approval, highlighting the growing interest among institutions in integrating blockchain technology into traditional financial products.

This article discusses Fidelity joining the RWA battle, and the OnChain fund will be recorded on the Ethereum blockchain, first appearing in Chain News ABMedia.