- Fidelity will launch OnChain shares on Ethereum for verified institutional transactions.
- OnChain class records ownership details daily, blending blockchain with official ledgers.
- Fidelity plans a $1 million minimum investment for OnChain shares, targeting institutions.
Fidelity Investments filed with the SEC on March 21, 2025, for a blockchain-enabled share class of its Treasury Digital Fund. The OnChain shares will run on Ethereum, providing transparency, efficiency, and transaction monitoring.
On-Chain Structure Announced by Altcoin Daily
Altcoin Daily reported on X that the OnChain share class aims to digitize ownership records while retaining traditional book-entry ledgers. Moreover, Fidelity’s Treasury Digital Fund, worth $80 million, consists almost entirely of U.S. Treasury bills. The tokenized structure is designed to ensure reconciliation between blockchain data and official records daily.
The SEC filing outlines plans to activate this feature on May 30, 2025, pending regulatory approval. Additionally, Head of Fidelity Digital Asset Management Cynthia Lo Bessette stated that blockchain-based recordkeeping can enhance capital efficiency. The platform will also maintain official shareholder records alongside blockchain data.
Market Impact and Transparency Efforts
Consequently, the OnChain initiative allows institutional investors to track share transactions verifiably on Ethereum. Fidelity confirmed that the U.S. Treasury securities themselves will not be tokenized. Instead, the OnChain class will tokenize ownership details for greater accuracy and auditability.
Besides, the move follows increasing interest in blockchain applications in traditional finance. Investors will be able to view transaction histories using blockchain explorers. The official ledger, however, will remain with Fidelity’s transfer agent for security and regulatory compliance.
Fidelity’s Long-Term Strategy
Furthermore, Fidelity, managing $5.8 trillion in assets, joins BlackRock and Franklin Templeton in exploring blockchain tokenization. The company may expand the OnChain platform to other blockchains in the future. The initiative reflects ongoing trends of merging digital technology with traditional finance.
The Treasury Digital Fund invests at least 99.5% in U.S. Treasury securities and cash. It aims to preserve capital and liquidity while offering high-income levels. Transaction fees on Ethereum will be covered by Fidelity as part of its service structure.
Additionally, the OnChain shares will initially have a minimum investment of $1 million. The SEC’s review period continues, with official launch plans set for late May 2025. Fidelity anticipates broader acceptance of tokenized financial products across institutional portfolios.
