Fidelity launches tokenized market fund with Ondo as anchor partner

Core Insights - Fidelity has launched the Fidelity Digital Interest Token (FDIT), an on-chain money market fund primarily backed by U.S. Treasuries, with Ondo Finance's Short-Term U.S. Treasuries Fund (OUSG) being the largest investor, comprising over 99% of FDIT assets [1][2] Group 1: Tokenization of Financial Products - Fidelity joins other major asset managers like BlackRock, Franklin Templeton, and WisdomTree in offering tokenized money market or Treasury funds, indicating a shift from experimentation to mainstream finance [2] - Ondo Finance has been a pioneer in this tokenization movement, launching OUSG in January 2023, which allows anyone to invest in U.S. Treasuries on-chain [3] Group 2: Ondo Finance's Offerings - OUSG is now the flagship tokenized product of Ondo, with a total value locked (TVL) exceeding $730 million, offering features like instant subscriptions, redemptions, and daily interest accruals across multiple blockchains [4] - Ondo has introduced other tokenized Treasury instruments, including BlackRock's USD Institutional Digital Liquidity Fund (BUIDL), Franklin Templeton/BENJI, and WisdomTree/WTGXX, enhancing its partnerships with top-tier asset managers [5] Group 3: Expansion of Tokenized Assets - Ondo Finance and the Ondo Foundation launched Ondo Global Market, providing over 100 tokenized U.S. stocks and ETFs to Ethereum, allowing non-U.S. investors 24/7 on-chain access to U.S. equities and ETFs [6] - The launch of tokenized money-market funds on blockchain rails is expected to facilitate faster settlement, 24/7 access, and interoperability within the digital-asset ecosystem [7]