Investment giant Fidelity has entered the race for blockchain-based asset tokenization with its SEC filing for an Ethereum-powered fund, FYHXX. The fund, which holds cash and US Treasuries, will use Ethereum’s blockchain to create an ‘on-chain share class.’ Though initially using a secondary ledger, Fidelity plans to eventually migrate to a proprietary network. This follows Fidelity’s prior attempt to launch a staking feature for its Ethereum ETF. 80% of the fund will be allocated to US Treasury securities and cash, providing a secure foundation while blockchain technology facilitates transparent transactions. Fidelity’s approach offers a bridge toward full blockchain integration with traditional financial infrastructure. This move positions them as a key contender in the emerging field of asset tokenization alongside leaders like BlackRock (with $1.5B BUIDL fund) and Franklin Templeton ($689M). While Fidelity’s entry may be later than rivals, their approach reflects a cautious but strategic commitment to blockchain technology’s potential impact on financial markets.