Fidelity Investments has rolled out its tokenized money market fund on the Ethereum ETH$4,353.20 blockchain, marking the Boston-based investment management giant’s entrance in the rapidly growing tokenized asset field.
Some $202 million in Fidelity Digital Interest Tokens (FDIT) were minted blockchain in early September, blockchain data on Etherscan shows. FBIT is the token representation of the Fidelity Treasury Digital Fund (FYOXX), the on-chain share class of the Fidelity Treasury Digital Fund (FYHXX), which seeks to provide yield to investors by holding U.S. Treasury bills. The asset manager first unveiled the facility in March in a regulatory filing with the U.S. Securities and Exchange Commission (SEC).
The key investor in the offering is tokenization platform Ondo Finance, holding $202 million in FBIT as a reserve asset for its OUSG yield-generating token, Ondo’s daily report shows. OUSG uses a range of tokenized money market funds including BUIDL by BlackRock and Securitize, Franklin Templeton’s BENJI and WisdomTree’s WTGXX to back the token’s value.
Tokenized Treasury boom
Tokenization of government debt, a crucial collateral asset in global markets, is part of a broader push to bring financial instruments, or real-world assets (RWA), onto blockchain rails. Global banks and asset managers like Fidelity Investments explore tokenization to cut settlement times, increase transparency and keep markets open around the clock.
The market of tokenized U.S. Treasuries is growing rapidly, more than tripling in the last year to $7.5 billion, RWA.xyz data shows. BlackRock and tokenization specialist Securitize dominates the market with the $2.4 billion BUIDL token, followed by offerings by Franklin Templeton and WisdomTree.
These tokens are increasingly used as a key piece of infrastructure for yield-earning strategies and collateral in the crypto economy.
Read more: Nasdaq Seeks Nod From U.S. SEC to Tokenize Stocks