Fidelity's Tokenized Money Market Fund Rolled Out on Ethereum With Ondo Holding $202M

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Fidelity Investments has rolled retired its tokenized wealth marketplace money connected the Ethereum (ETH) blockchain, marking the Boston-based concern absorption giant's entranceway successful the rapidly increasing tokenized plus field.

Some $202 cardinal successful Fidelity Digital Interest Tokens (FDIT) were minted blockchain successful aboriginal September, blockchain data connected Etherscan shows. FBIT is the token practice of the Fidelity Treasury Digital Fund (FYOXX), the on-chain stock people of the Fidelity Treasury Digital Fund (FYHXX), which seeks to supply output to investors by holding U.S. Treasury bills. The plus manager first unveiled the installation successful March successful a regulatory filing with the U.S. Securities and Exchange Commission (SEC).

The cardinal capitalist successful the offering is tokenization level Ondo Finance, holding $202 cardinal successful FBIT arsenic a reserve plus for its OUSG yield-generating token, Ondo's regular report shows. OUSG uses a scope of tokenized wealth marketplace funds including BUIDL by BlackRock and Securitize, Franklin Templeton's BENJI and WisdomTree's WTGXX to backmost the token's value.

Tokenized Treasury boom

Tokenization of authorities debt, a important collateral plus successful planetary markets, is portion of a broader propulsion to bring fiscal instruments, oregon real-world assets (RWA), onto blockchain rails. Global banks and plus managers similar Fidelity Investments research tokenization to chopped colony times, summation transparency and support markets unfastened astir the clock.

The marketplace of tokenized U.S. Treasuries is increasing rapidly, much than tripling successful the past twelvemonth to $7.5 billion, RWA.xyz data shows. BlackRock and tokenization specializer Securitize dominates the marketplace with the $2.4 cardinal BUIDL token, followed by offerings by Franklin Templeton and WisdomTree.

These tokens are progressively utilized arsenic a cardinal portion of infrastructure for yield-earning strategies and collateral successful the crypto economy.

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