Fidelity’s tokenized money market fund rolled out on Ethereum this month, marking one of the most notable moves yet by a traditional asset manager into the on-chain Treasuries market. The new offering, called the Fidelity Digital Interest Token (FDIT), represents a share class of the firm’s Treasury fund and already holds more than $200 million in short-term U.S. Treasuries and money-market instruments.

While the fund has launched quietly with limited public comment, the size and nature of the rollout reflect Fidelity’s growing interest in blockchain-based real-world asset tokenization.

Fidelity’s Entry into Tokenized Treasuries

The launch of FDIT introduces Fidelity Investments to a market that has been steadily gaining traction over the past two years. FDIT is a tokenized version of the Fidelity Treasury Digital Fund (FYOXX), structured to provide a daily-accruing yield with no lockup period. On-chain data shows more than 203 million tokens already issued, giving investors blockchain-native access to U.S. Treasury securities and money market assets.

The fund operates with a 0.20% annual management fee and is custodied by the Bank of New York Mellon, according to filings. It is designed to allow digital settlement, 24/7 transfers, and interaction with decentralized finance (DeFi) applications, making it more flexible than traditional money market funds.

Ondo Finance and Market Integration

A key player in the initial rollout is Ondo Finance, which holds $202 million in FDIT as part of the reserves backing its OUSG yield-generating token. OUSG already integrates multiple tokenized funds, including BlackRock’s BUIDL and Franklin Templeton’s BENJI, and Fidelity’s addition broadens that pool. Ondo’s role highlights how tokenized funds are being used as collateral and yield-bearing infrastructure within the crypto ecosystem.

While the Fidelity fund has just a handful of holders at present, its integration into Ondo’s framework points to potential utility in broader digital finance markets.

Growing Tokenized Treasury Market

The wider market for tokenized Treasuries has grown rapidly, more than tripling in the past year to an estimated $7.5 billion, according to RWA.xyz. BlackRock’s BUIDL remains the largest product with more than $2 billion in assets, followed by offerings from Franklin Templeton and WisdomTree.

Tokenization of government debt is seen by financial institutions as a way to cut settlement times, improve transparency, and maintain round-the-clock market access. These features have made tokenized Treasuries increasingly important as collateral for DeFi protocols and as a tool for institutional investors seeking blockchain exposure without taking on the volatility of cryptocurrencies.

A Quiet but Strategic Rollout

Despite the scale of the launch, Fidelity has not issued a formal public statement about FDIT. The move follows a March filing with the U.S. Securities and Exchange Commission that outlined its intention to add an on-chain share class of its Treasury fund. Analysts note that early adoption is still highly concentrated, with only two primary holders reported, but the structure of the fund sets the stage for wider adoption over time if confidence in blockchain rails continues to grow.

Positioning Within a Growing Market

Fidelity’s tokenized money market fund rolled out on Ethereum adds another heavyweight asset manager to the growing field of blockchain-based Treasuries. With more than $200 million already issued and integration through Ondo Finance, the launch underscores both the potential and the caution still shaping this market.

While the fund is currently concentrated among a small number of holders, its entry signals how traditional finance is continuing to explore tokenization as a pathway to more transparent and efficient capital markets.