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Fidelity Enters Tokenized Treasuries With Ethereum-Based Fund on May 30
- Fidelity Investments plans to launch a blockchain-based money market fund on Ethereum called the Fidelity Treasury Digital Fund (FYHXX). It will consist of U.S. Treasury securities and cash, and aims to utilize blockchain technology for its transfer agent. The fund is set to go live on May 30th.
- Tokenized U.S. Treasury market has seen significant growth, with the total market value reaching $4.77 billion, a YoY increase of almost 500%. BlackRock's BUIDL fund leads the way with $1.5 billion in assets, followed by Franklin Templeton's tokenized fund with $689 million.
- Tokenization of assets such as Treasuries enables faster settlements, 24x7 trading, and reduces reliance on intermediaries. The rise of tokenized assets signifies increased adoption of blockchain-based financial instruments, with firms like Visa, Mastercard, and JPMorgan introducing blockchain programs.
- Fidelity's move into tokenized Treasuries aligns with the traditional finance industry's embrace of blockchain. It is expected to further promote the mass adoption of digital assets, following the success of Fidelity's Bitcoin and Ethereum ETFs.
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