Fidelity Launches $202M Tokenized Money Market Fund on Ethereum With Ondo as Key Holder

Fidelity Investments, one of the world’s largest asset managers, has officially entered the blockchain tokenization market by launching a money market fund on Ethereum. The move places Fidelity in the rapidly expanding $7.5 billion market for tokenized U.S. Treasuries, where banks and asset managers are increasingly adopting blockchain to unlock faster settlement, broader access, and enhanced transparency.

What to Know

• Fidelity has launched the Fidelity Digital Interest Token (FDIT) on Ethereum, representing shares of its Treasury Digital Fund.
• $202 million worth of FDIT tokens were minted in early September, with Ondo Finance holding the entire supply as a reserve asset for its OUSG yield token.
• The tokenized U.S. Treasuries market has more than tripled in the past year, reaching $7.5 billion in size.
• Competitors like BlackRock, Franklin Templeton, and WisdomTree are already active, making tokenized funds a major piece of crypto’s real-world asset infrastructure.

Fidelity’s On-Chain Treasury Fund Surpasses $200M

According to blockchain data from Etherscan, more than $202 million worth of Fidelity Digital Interest Tokens (FDIT) were issued in early September. Each token represents exposure to the Fidelity Treasury Digital Fund (FYOXX), the blockchain-enabled share class of Fidelity’s flagship Treasury Fund (FYHXX). The fund seeks to provide stable yield to investors through U.S. Treasury bills.

The product was first disclosed in March through an SEC filing, highlighting Fidelity’s growing commitment to integrating blockchain technology into traditional investment strategies. By tokenizing fund shares, Fidelity aims to bring traditional money market products into the 24/7, borderless digital asset economy.

Ondo Finance Becomes Primary Investor

The main buyer of FDIT so far is Ondo Finance, a tokenization platform specializing in real-world assets. Ondo holds $202 million of the Fidelity-issued tokens, using them as a reserve asset to back its OUSG yield-generating token.

OUSG aggregates tokenized money market funds from multiple issuers, including BlackRock’s BUIDL (launched with Securitize), Franklin Templeton’s BENJI, and WisdomTree’s WTGXX. By adding Fidelity’s offering, Ondo strengthens its position as a leading player in the tokenized Treasury ecosystem, offering investors blockchain-based exposure to short-term government debt.

Tokenization of Treasuries Gains Momentum

The rollout of Fidelity’s tokenized fund comes as tokenized government debt is becoming one of the most popular blockchain-based real-world assets (RWA). Tokenization allows assets like U.S. Treasuries — long considered the safest and most liquid collateral in financial markets — to be settled in real time on decentralized networks.

This shift is appealing to both institutions and crypto-native firms, as it cuts down on settlement delays, provides 24/7 market access, and increases transparency in how assets are managed and held.

The market for tokenized Treasuries has exploded over the past year, more than tripling in size to $7.5 billion, according to RWA.xyz data. BlackRock dominates with its $2.4 billion BUIDL token, while Franklin Templeton and WisdomTree are also steadily expanding their offerings. Fidelity’s entry further validates the trend and signals that major financial players see blockchain tokenization as the future of asset management.

Strategic Role in Crypto’s Yield Economy

Tokenized Treasuries are becoming a critical piece of crypto infrastructure. They are now widely used as collateral in decentralized finance (DeFi), as building blocks for yield-generating strategies, and as safer alternatives to stablecoins for investors seeking yield without excessive volatility.

By integrating into this ecosystem, Fidelity provides both institutional and retail investors with more options for earning yield on-chain, while simultaneously bridging the gap between traditional finance and crypto.

Outlook: Fidelity’s Growing Role in Tokenized Assets

Fidelity’s launch represents more than just another tokenized product. It signals the willingness of one of the world’s largest asset managers to embrace blockchain rails for mainstream financial products. With over $200 million minted in just weeks and Ondo Finance as a committed buyer, FDIT could quickly become a core asset in the tokenized Treasuries sector.

As adoption of tokenized RWAs continues to accelerate, Fidelity is now positioned to compete with BlackRock, Franklin Templeton, and WisdomTree in a market that could expand well beyond Treasuries into equities, credit, and alternative assets.

Read more: What Is Tokenization in Blockchain?