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Headline: Fidelity Enters Tokenized Treasury Arena Alongside BlackRock and UBS, Exceeding $10 Billion
* Fidelity is the most recent institutional heavyweight to embrace tokenization.
* The industry has witnessed swift development over the last three years.
Fidelity is introducing its own investment vehicle, joining the group of tokenized tangible assets with roughly $10 billion in on-chain valuation.
The financial giant, overseeing approximately $6 trillion in holdings, has revealed intentions to develop an Ethereum-based monetary fund for institutional participants, named OnChain. Ice Open Network and ChainGPT Reveal Innovative Web3-AI Alliance
Comparable to typical money market funds, Fidelity will allocate “99.5%” of the fund to U.S. government bonds and liquidity.
Fidelity is emulating UBS, BlackRock, and Franklin Templeton in launching tokenized investment vehicles.
Based on information from DefiLlama, the aggregate worth of “real-world assets” on the blockchain has undergone rapid expansion in the previous three years, escalating from about $157 million in 2022 to almost $11 billion.
Ondo’s Chief Strategy Officer, Ian De Bode, informed DL News the previous year that “as on-chain capital holders grow more refined, they are understanding that tokenized treasuries possess benefits over stablecoins.”
BlackRock CEO Larry Fink has voiced his aspiration to witness the vast majority of financial tools tokenized, with the company’s individual tokenized treasury fund, BUIDL, already drawing in excess of $1.6 billion in funds.
Fresh participants persist in appearing in the sector, with Ondo intending to run its tokenization-centered chain, Ondo Chain, as a “distribution center.”
Fidelity has affirmed that the fund will function both on-chain and off-chain, with the “formal record of share ownership” sustained conventionally in the company’s ledgers, whereas blockchain dealings will be regarded as a “secondary market” for subsequent harmonization.
Fidelity explained that “the fund will not allocate capital in any crypto assets.”
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