Fidelity seeks SEC approval for US Treasury money market fund integrated with Ethereum

Fidelity has put forward a plan to integrate Ethereum blockchain technology into one of its proposed funds in order to improve the process of recording secondary share transactions. The details of this innovative approach were outlined in a preliminary prospectus released on March 21, 2025.

This forward-thinking move by Fidelity aims to leverage the benefits of blockchain technology, particularly Ethereum’s smart contract capabilities, to streamline and enhance the recording of secondary share transactions. By utilizing the decentralized and transparent nature of blockchain, Fidelity hopes to increase efficiency, reduce costs, and provide greater security in the handling of these transactions.

The proposed fund will utilize Ethereum blockchain to record secondary share transactions, allowing for a more seamless and secure process. This will enable shareholders to have a clearer and more immediate understanding of their holdings, as transactions will be recorded in real-time on the blockchain. Additionally, the use of smart contracts will automate certain aspects of the transaction process, further reducing the potential for errors or delays.

Fidelity’s decision to explore the integration of blockchain technology into its fund management processes reflects a growing trend within the financial industry towards embracing digital innovation. By incorporating Ethereum blockchain into the recording of secondary share transactions, Fidelity is demonstrating a commitment to staying at the forefront of technological advancements in order to better serve its clients and improve operational efficiency.

This move has been met with positive feedback from industry experts, who see the potential for blockchain technology to revolutionize the way financial transactions are conducted. By leveraging the security and transparency of blockchain, Fidelity is positioning itself as a leader in adopting cutting-edge solutions to enhance its services.

While the integration of Ethereum blockchain into Fidelity’s fund management processes is still in the proposal stage, it represents a significant step towards modernizing the way financial institutions handle transactions. By harnessing the power of blockchain technology, Fidelity is poised to set a new standard for efficiency, security, and transparency in the management of secondary share transactions.

Overall, Fidelity’s decision to explore the integration of Ethereum blockchain into its fund management processes is a proactive and forward-thinking move that has the potential to revolutionize how financial institutions handle transactions. By embracing digital innovation and leveraging the benefits of blockchain technology, Fidelity is demonstrating its commitment to staying ahead of the curve and providing enhanced services to its clients.