Fidelity Investments has filed with the U.S. Securities and Exchange Commission to launch the Fidelity Treasury Digital Fund, a money market fund designed for institutional investors that combines traditional Treasury exposure with blockchain-based recordkeeping. According to the preliminary prospectus, the fund aims to deliver 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% allocated directly to Treasuries.
Ethereum is used for recordkeeping, not crypto investing
The filing makes clear that the proposed product is not a crypto investment vehicle. Instead, its distinguishing feature is an onchain share class that uses the Ethereum blockchain as a secondary ledger to record share ownership. Fidelity said traditional book-entry records and blockchain data would be reconciled daily to keep both systems aligned.
The fund also explicitly states that it will not invest in digital assets. Investors would be able to view balances through blockchain wallets administered by Fidelity’s transfer agent, while private keys would remain under company control as a safeguard against operational and security risks. The structure reflects how large asset managers are experimenting with blockchain infrastructure without fully abandoning conventional custody and compliance models.
Institutional product with a $1 million minimum
The proposed fund is clearly tailored to institutional participants. Fidelity disclosed a 0.25% annual management fee, temporarily reduced to 0.20% through August 2026 under a contractual expense waiver. The minimum initial investment is set at $1 million, although the requirement may be waived in certain cases.
Purchases and redemptions would be processed through Fidelity’s platform, with same-day settlement via wire transfer. In regulatory terms, the fund remains structured as a conventional money market fund under the Investment Company Act of 1940, with blockchain introduced only as an added layer for ownership tracking.
Another step in the RWA tokenization race
Fidelity’s move places it alongside major traditional finance firms such as BlackRock and Franklin Templeton, which have also expanded into tokenized Treasury products and broader real-world asset tokenization. For Fidelity, the filing adds to a growing digital asset strategy that already includes bitcoin custody, spot bitcoin ETFs, spot ethereum ETFs, and other blockchain-related initiatives.
The filing also acknowledges potential risks, including blockchain network delays, regulatory changes, and cybersecurity threats. At the same time, Fidelity pointed to Ethereum’s proof-of-stake consensus as one factor supporting the network’s operational reliability. The SEC is expected to review the proposal ahead of its planned May 30, 2025 effective date. If approved, the fund would mark another major step in connecting traditional fund infrastructure with onchain ownership records. Market momentum in the segment has been strong as well: since March 2024, tokenized Treasuries have expanded by 566% over the past year.