Fidelity Investments has officially rolled out its tokenized money market fund on Ethereum, with $202 million already minted and held by Ondo Finance.
Fidelity Expands Into Tokenized Treasuries
Boston-based Fidelity Investments has entered the rapidly growing tokenized U.S. Treasuries market by issuing the Fidelity Digital Interest Token (FDIT) on Ethereum. The token represents shares of the Fidelity Treasury Digital Fund (FYOXX), which invests in short-term U.S. Treasury bills to provide yield for investors.
Blockchain data from Etherscan confirms that more than $202 million worth of FDIT tokens were minted in early September, signaling a strong institutional entry into tokenized assets. Fidelity first outlined the initiative in a March SEC filing, positioning it as part of its broader digital asset strategy.
Ondo Finance as Key Investor
The largest holder of Fidelity’s new token is Ondo Finance, a tokenization platform that has integrated FDIT as a reserve asset for its OUSG yield-generating token. According to Ondo’s daily report, it currently holds the entire $202 million supply of Fidelity’s token.
OUSG is backed by a basket of tokenized money market funds, including:
- BlackRock’s BUIDL (via Securitize)
- Franklin Templeton’s BENJI
- WisdomTree’s WTGXX
- Now, Fidelity’s FDIT
This positions Fidelity alongside some of the largest asset managers in tokenization, joining an ecosystem where tokenized Treasuries are being actively used for yield strategies and collateral in decentralized finance (DeFi).
Tokenized Treasuries Market Booms Past $7.5B
The tokenized U.S. Treasuries market has more than tripled in size over the past year, reaching $7.5 billion, according to RWA.xyz.
- BlackRock and Securitize dominate the space with the $2.4 billion BUIDL token.
- Franklin Templeton and WisdomTree have also carved out significant positions.
- With Fidelity’s entrance, competition among major asset managers is intensifying.
Why Tokenization Matters
The tokenization of government debt reflects a broader shift toward real-world assets (RWA) on blockchain, offering:
- 24/7 settlement and trading
- Greater transparency in fund holdings
- Faster collateral movement for institutional markets
For investors, tokenized funds like Fidelity’s FDIT make traditional safe-haven assets like U.S. Treasuries more liquid, accessible, and interoperable with crypto-native platforms.
Fidelity’s move underscores how legacy financial institutions are increasingly using blockchain to modernize traditional markets. As tokenized Treasuries continue to scale, they are becoming a core building block of the digital financial system, used in everything from DeFi lending protocols to institutional collateral management.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.