Fidelity Investments, an international asset management company, is preparing to launch a new money market fund based on blockchain technology, aimed at speeding up financial transactions and expanding its user base.
On September 26, 2024, Fidelity filed documents with the U.S. Securities and Exchange Commission (SEC), reporting plans to create a money market fund operating on blockchain technology. This move aims to increase the speed and efficiency of transactions, making them simpler and more convenient.
Fidelity’s fund will compete with BlackRock, whose similar fund has already attracted over $500 million in investments, as well as with Franklin Templeton, which launched a tokenized fund on the Aptos platform and made it available on Ethereum via Arbitrum, Stellar, and Polygon, thereby raising the bar for Fidelity. However, Fidelity has already begun the process of tokenizing shares of its money market fund through the Onyx Digital Assets platform, based on Ethereum, developed by JPMorgan.
