Fidelity, the financial services company, has introduced the Fidelity Digital Interest Token (FDIT), a new tokenized money market fund on the blockchain. Ondo Finance, a blockchain technology company, primarily backs the fund.
The Short-Term US Treasuries Fund (OUSG) accounts for over 99% of FDIT’s assets.
This launch is a major development in the growing trend of institutional asset managers tokenizing traditional financial products, following the path of firms like BlackRock and Franklin Templeton.
Ondo Finance stated on its X post that it had launched OUSG in January 2023, one of its first tokens to offer on-chain exposure to U.S. Treasuries. Since then, the tokenized asset space has expanded, with BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) launched in March 2024, enabling instant redemptions to USDC via integration with Circle.
Ondo integrated BUIDL into OUSG’s reserves and has diversified its holdings to include funds from major asset managers, including Fidelity’s FDIT, Franklin Templeton’s BENJI, WisdomTree’s WTGXX, and Wellington Management’s ULTRA.
As per the official blog post, OUSG, with over $730 million in total value locked, supports instant subscriptions and redemptions, daily interest accruals, and low fees. It also operates across the Ethereum, Solana, Ripple, and Polygon blockchains.
This broad integration reflects increasing collaboration between traditional finance and decentralized finance (DeFi), with Ondo Finance playing a central role. The launch of FDIT adds to the momentum of tokenized financial products, building on innovations from firms like BlackRock and Circle.
The growing adoption of tokenized assets highlights their potential to enhance liquidity and accessibility in financial markets. Ondo Finance’s OUSG continues to serve as a key connector in this evolving ecosystem, facilitating partnerships with leading asset managers.
As tokenization gains traction, it is reshaping the landscape of global finance by bridging traditional and on-chain systems, with institutions like Fidelity and Ondo at the forefront of this transformation.
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