Fidelity Launches Tokenized Money Market Fund on Ethereum with $202 Million Investment
Fidelity Investments has launched its tokenized money market fund on the Ethereum blockchain, entering the tokenized asset sector. Key points include:
- $202 million in Fidelity Digital Interest Tokens (FDIT) minted in early September.
- FBIT represents the Fidelity Treasury Digital Fund (FYOXX), which aims to generate yield from U.S. Treasury bills.
- The initiative was first announced in March via a regulatory filing with the SEC.
- Ondo Finance is the primary investor, holding $202 million in FBIT as a reserve for its OUSG yield-generating token.
- Tokenization of government debt is part of a broader effort to integrate real-world assets onto blockchain platforms.
- The market for tokenized U.S. Treasuries has increased over threefold in the past year, now valued at $7.5 billion.
- BlackRock and Securitize are significant players, with the BUIDL token valued at $2.4 billion.
- These tokens serve as critical infrastructure for yield-earning strategies within the crypto economy.