Fidelity Files for ‘OnChain’ Treasury Market Fund That Stores Transaction Records on Ethereum

The asset management giant Fidelity hopes to launch a blockchain-tracked share class for one of its existing funds.

The Fidelity Treasury Digital Fund is 99.99% invested in U.S. Treasury bills.

A new filing with the U.S. Securities and Exchange Commission (SEC) indicates the firm hopes to launch a new “OnChain” share class for the fund in May. The new product is designed to increase ownership transparency for its Treasury Digital Fund by recording transactions on a public blockchain.

Reads the filing,

“The fund’s transfer agent maintains the official record of share ownership of the OnChain class in book-entry form. Ownership of the OnChain class will also be recorded on a public blockchain. Although the secondary recording of the OnChain class on a blockchain will not represent the official record of ownership, the transfer agent will reconcile the secondary blockchain transactions with the official records of the OnChain class on at least a daily basis. The transfer agent’s book-entry records will constitute the official record of the fund and govern the record ownership of fund shares in all circumstances.”

The OnChain share class plans to use the Ethereum ( ETH ) network as the public blockchain. The filing notes the fund might use other blockchain networks in the future.

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