Altcoins News

Story: Fidelity Tokenizes U.S. Treasury Fund on Ethereum

By Dan Saada

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Fidelity Investments is making a major push into the world of asset tokenization by converting its U.S. dollar money market fund into a blockchain-based version.

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The FYHXX fund, which was introduced late last year, currently holds $80 million in U.S. Treasury bills.

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Fidelity’s move places the firm among other significant financial institutions entering the tokenized U.S. Treasury market.

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Ethereum has emerged as the dominant blockchain for financial institutions looking to tokenize assets. As of now, over $3.

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The tokenized U.S. Treasury market, which was valued at $4.77 billion, has seen an explosive growth rate of 500% over the past year.

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Fidelity is not only focused on tokenization but is also a leader in cryptocurrency investment products. The firm offers two popular exchange-traded funds (ETFs) in the U.S.

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For years, regulatory uncertainty hindered the growth of tokenized securities, with banks reluctant to engage with crypto-related assets. However, the U.S.

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Other major financial firms, including Visa, Mastercard, and Tether, are also embracing tokenization.

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Experts predict that the tokenized asset market could reach $600 billion by 2030, according to a report from Boston Consulting Group.

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