Fidelity Launches Tokenized Fund FDIT With Ondo Finance OUSG Leading Investment

Fidelity Investments has officially launched its tokenized money market fund, the Fidelity Digital Interest Token (FDIT), on the Ethereum blockchain. The move marks the Boston-based asset manager’s entry into the growing field of tokenized assets. 

The largest investor in FDIT is Ondo Finance’s Ondo Short-Term US Treasuries Fund (OUSG), which currently represents over 99% of the fund’s assets.

FDIT is the tokenized version of the Fidelity Treasury Digital Fund (FYOXX), which itself is an on-chain share class of the Fidelity Treasury Digital Fund (FYHXX). The fund primarily invests in U.S. Treasury bills, aiming to provide yield for investors. 

Early blockchain data from Etherscan shows that approximately $202 million in FDIT was minted in early September. Fidelity first disclosed plans for this tokenized facility in a March regulatory filing with the U.S. Securities and Exchange Commission (SEC).

Institutional Momentum: Tokenization of Traditional Assets

Fidelity’s launch follows a wider trend in which leading asset managers bring traditional financial products onto blockchain networks. BlackRock, Franklin Templeton, and WisdomTree have all introduced tokenized money market or Treasury products in recent years.

Key points on tokenization trends:

• BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) integrates Circle to allow instant redemptions to USDC.
• Franklin Templeton’s BENJI and WisdomTree’s WTGXX represent early experiments in tokenized Treasury exposure.
• Fidelity now joins this group with FDIT, signaling growing mainstream adoption of on-chain Treasuries.

Tokenization allows traditional assets to be traded and settled directly on blockchain networks, reducing settlement times and increasing transparency.

Ondo Finance’s Role in FDIT

Ondo Finance launched its OUSG fund in January 2023, offering investors on-chain access to U.S. Treasuries. It has since grown into a flagship product with over $730 million in total value locked (TVL). OUSG provides features including:

• Instant, 24/7 subscriptions and redemptions
• Daily interest accruals
• Low fees
• Multi-chain support (Ethereum, Solana, Ripple, Polygon)

The OUSG portfolio now spans multiple top-tier asset managers, including BlackRock (BUIDL), Fidelity (FDIT), Franklin Templeton (BENJI), WisdomTree (WTGXX), and Wellington Management/FundBridge Capital (ULTRA). By integrating FDIT, Ondo further strengthens liquidity and ecosystem maturity.

According to Ondo, OUSG currently represents more than 99% of FDIT assets. This partnership allows Fidelity to enter the on-chain Treasury market while leveraging an established network of tokenized products.

Technical Mechanics of FDIT

FDIT operates as an ERC-20 token on Ethereum. Investors can:

• Hold FDIT as a digital representation of their shares in the Fidelity Treasury Digital Fund
• Receive daily interest accruals tied to U.S. Treasury bills
• Trade or transfer tokens on-chain with near-instant settlement

The tokenized structure ensures that investors retain exposure to traditional Treasury yields while accessing the benefits of blockchain, including transparency, programmability, and interoperability with other DeFi products.

Ondo Global Markets: Expanding Tokenized Access

Ondo recently launched Ondo Global Markets, a platform offering more than 100 tokenized U.S. stocks and ETFs on Ethereum. By the end of 2025, the platform aims to provide over 1,000 tokenized assets. Key features include:

• 24/7 on-chain access for international investors
• Tokens fully backed by corresponding U.S.-listed securities
• Dividends and corporate actions reflected in token prices
• Minting and redemption with stablecoins at underlying market value

Non-U.S. investors across Asia-Pacific, Europe, Africa, and Latin America can participate, though users in the U.S. and U.K. are excluded due to regulatory restrictions. This setup mirrors the actual performance of U.S. equities while offering continuous liquidity and wallet-to-wallet transfers.

Integration With Ripple and Multi-Chain Support

Future updates will expand Ondo’s Treasury token offerings to Ripple’s enterprise-focused XRP Ledger, allowing investors to mint and redeem tokens using RLUSD stablecoins. Multi-chain support ensures that products like OUSG and FDIT remain accessible across Ethereum, Solana, Polygon, and Ripple, providing flexibility for institutional and retail participants alike.

The Broader Implications for TradFi and DeFi

Fidelity’s entry reinforces the growing convergence between traditional finance (TradFi) and decentralized finance (DeFi). By tokenizing money market funds and U.S. Treasuries:

• Asset managers can reach global investors with 24/7 on-chain access
• Settlement times are reduced from days to near-instant
• Transparency is enhanced through blockchain tracking of tokenized shares
• Liquidity pools, like OUSG, create efficient market-making opportunities

This integration also provides a framework for compliance and custodian involvement, allowing regulatory oversight without sacrificing on-chain efficiency.

Conclusion

Fidelity’s FDIT token and Ondo Finance’s OUSG fund demonstrate the practical capabilities of tokenized assets. Investors can now access U.S. Treasuries and money market yields on-chain, with instant subscriptions, daily interest accruals, and cross-chain compatibility. The collaboration reflects the maturity of tokenization infrastructure, showing that large-scale adoption by established asset managers is viable.

Resources:

1. Ondo Finance’s announcement about Fidelity’s FDIT: https://blog.ondo.finance/fidelity-unveils-onchain-money-market-fund-anchored-by-ondo-finance/

2. Ondo Finance blog: https://blog.ondo.finance/

3. Ondo Finance docs: https://docs.ondo.finance/