# Fidelity Documents with SEC to Initiate Blockchain-Driven USD Cash Reserve
The financial giant Fidelity Investments has made an important entry into the blockchain space by submitting documents to the U.S. Securities and Exchange Commission (SEC) to obtain permission for a tokenized portion of its USD cash reserve, enabled by blockchain technology.
Fidelity’s idea includes creating a blockchain version of its USD Cash Reserve. The documentation with the SEC requests registration for an “OnChain” portion of its Fidelity Government Cash Reserve (FYHXX), which contains a combination of cash and U.S. government bonds.
The reserve is currently utilizing the Ethereum (ETH) network, with possible strategies to include other blockchains in the future. If authorized, the reserve is scheduled to commence operations on May 30.
Fidelity’s action is part of an increasing pattern among financial organizations to introduce traditional financial instruments like government bonds onto blockchain platforms, targeting improved efficiency and quicker transaction rates. Franklin Templeton spearheaded the effort in 2021 with its on-chain cash reserve, FOBXX.
Following Franklin Templeton’s leading initiatives, financial giants such as JPMorgan Chase and BlackRock have also entered the field.
In 2023, JPMorgan Chase revealed a tokenized U.S. Treasury bond reserve that invests in U.S. Treasury bills, bonds, and notes.
In March 2024, BlackRock partnered with digital asset firm Securitize to introduce its tokenized U.S. Treasury note reserve, BUIDL, which recently exceeded $1 billion in assets under management.
According to information from rwa.xyz, tokenized U.S. Treasury debt is now the second-largest contributor to the total valuation of tokenized real-world assets, with a USDC Market Value Goes Beyond Billion, Achieving Record High and Surpassing USDT’s Expansion capitalization of $4.8 billion, second only to private credit reserves holding $12.2 billion.
