Fidelity Investments has joined the asset tokenization race, planning to launch a blockchain version of its money market fund.
FYHXX Fund Set to Launch on Ethereum
The $80 million FYHXX fund, primarily consisting of US Treasury bills, will be deployed on the Ethereum network. The product is expected to launch on May 30, pending regulatory approval.
Impact on the Tokenization Market
Fidelity's filing comes amid a growing trend of tokenizing traditional financial assets, promising increased operational efficiency, reduced costs, and 24/7 transaction capabilities.
Market Trends and Forecasts
The tokenized US Treasury market is rapidly expanding, valued at $4.77 billion. Boston Consulting Group predicts asset growth to $600 billion by 2030.
Fidelity and other major companies like BlackRock continue to invest in tokenization, highlighting the significance and prospects of this emerging technology in the financial world.
