All You Need to Know About Fidelity’s New ‘OnChain’ Share Class

Fidelity Investments recently announced plans to launch its “OnChain” share class, a tokenized version of its Fidelity Treasury Digital Fund (FYHXX), on the Ethereum blockchain. The company filed with the US Securities and Exchange Commission (SEC) on March 21, 2025, aiming for a May 30 launch, pending approval. This move places Fidelity alongside major players like BlackRock and Franklin Templeton in the growing world of blockchain tokenization.

The Fidelity Treasury Digital Fund manages $80 million, mostly in U.S. Treasury bills. The “OnChain” share class will not tokenize the Treasury bills themselves. Instead, it will track transactions of the fund on Ethereum, offering investors greater transparency and verifiability. Fidelity will still keep traditional book-entry records as the official ownership ledger. A transfer agent will reconcile blockchain transactions with these records daily.

Cynthia Lo Bessette, Head of Fidelity Digital Asset Management, shared her excitement about the project. “We see promise in tokenization,” she told Cointelegraph. “It can transform financial services by improving efficiency and capital access across markets.” She also hinted at real-world benefits, like using tokenized assets as collateral to streamline operations.

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How ‘OnChain’ Could Redefine Treasury Fund Tracking

Fidelity Investments, managing $5.8 trillion in assets, may expand “OnChain” to other blockchains in the future. This flexibility shows their long-term commitment to blockchain technology. The firm already has a strong crypto presence, with its Fidelity Wise Origin Bitcoin Fund holding $16.5 billion and its Ethereum Fund at $780 million, according to SoSoValue data.

The tokenized real-world asset (RWA) market for Treasury products is booming. It’s currently worth $4.78 billion, per rwa.xyz. Ethereum leads with $3.3 billion in tokenized RWAs, followed by Stellar at $465.6 million. BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) dominates with $1.46 billion. Fidelity’s entry could heat up this competition further.

Why Ethereum? BlackRock’s head of crypto, Robbie Mitchnick, recently called it the “natural default” for tokenization at the Digital Asset Summit in New York on March 20, 2025. He praised its decentralization, credibility, and security—qualities Fidelity likely values too.

This isn’t Fidelity’s first blockchain rodeo. The firm has explored stablecoins and onchain credit, per a 2024 interview with Lo Bessette on TheBlock. Adding “OnChain” to its portfolio signals a deeper push into blending traditional finance with crypto tech. If successful, it could pave the way for more products, like a Solana-based fund, as speculated by some X users.

The broader trend is clear: asset managers love blockchain. Tokenized Treasury bills, bonds, and private credit have surged in recent years. Fidelity’s “OnChain” share class aims to capitalize on this, offering a transparent, efficient option for investors. While it won’t replace traditional systems yet, it’s a bold step toward a blockchain-powered financial future.

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Fidelity plans to launch its “OnChain” share class on Ethereum by May 30, tokenizing its $80 million Treasury Digital Fund for better tracking.

The “OnChain” class tracks transactions on the blockchain, offering investors clarity. Traditional records remain official and reconciled daily.

With a $4.78 billion RWA market, Fidelity joins BlackRock and others, potentially intensifying competition in tokenized Treasury products.

Fidelity’s $5.8 trillion empire hints at expanding “OnChain” to other blockchains, building on its $17 billion crypto funds.

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