New York, Wednesday, October 23, 2024 – Fidelity Investments is planning to launch its first money market fund traded on a blockchain, according to The Information.
This move would mark another step by traditional financial institutions to embrace blockchain technology and accelerate financial transactions.
Fidelity has reportedly submitted documents to U.S. securities regulators outlining its plans for the blockchain-based money market fund.
The fund would compete with similar products offered by BlackRock, which have already attracted significant investor interest, surpassing $500 million in capital.
The financial giant filed paperwork with US securities regulators on September 26, outlining its plans to use blockchain to speed up transactions and broaden its product offerings.
This move puts Fidelity in direct competition with BlackRock, which already offers a similar blockchain-based money market fund that has attracted over $500 million from investors.
Fidelity’s blockchain-based fund aims to streamline operations, enhance transaction efficiency, and appeal to a growing base of digital asset enthusiasts. The decision reflects a broader trend among traditional financial institutions that are increasingly integrating advanced technologies to modernize their products.
Founded in 1946, Fidelity Investments has grown into one of the world’s largest asset management companies, serving millions of clients globally.
In recent years, Fidelity has been a leader in digital assets, launching Fidelity Digital Assets in 2018 to offer institutional clients cryptocurrency trading and custody services.
The company has also made significant investments in blockchain startups and explored various blockchain applications to improve efficiency and reduce costs in financial services.
