Popular tokenization platform Ondo Finance has surpassed $2.5 billion in total value locked (TVL) across its tokenized products, the company announced on Jan. 23. The milestone makes Ondo Finance the largest platform for tokenized U.S. Treasuries and tokenized stocks, according to data from the onchain analytics platforms RWA.xyz and DefiLlama. Related: What is tokenization? Explained Ondo leads market in tokenized U.S. Treasuries The tokenization platform now leads the tokenized U.S. Treasury market w ...

Core Insights - U.S. Treasuries are recognized as the safest and most liquid assets globally, with Treasury Bills (T-Bills) being short-term, risk-free investments exempt from state and local taxes [1] - Tokenized U.S. Treasuries are gaining popularity, with a record high of $7.45 billion reached on August 27, surpassing the previous peak of $7.42 billion on July 15 [3] Group 1: Tokenized U.S. Treasuries - Tokenized U.S. Treasuries are digital tokens on a blockchain that represent ownership of U.S. government debt or shares of funds holding Treasuries [4] - Implementation of tokenized Treasuries varies, with some tokens representing fractional ownership of T-Bills/T-Notes, while others represent ownership of traditional funds that hold Treasuries [5] - Tokenized Treasuries can exist on public blockchains like Ethereum or on permissioned systems, with Ethereum currently securing $5.2 billion of treasury products, representing a 70% market share [6] Group 2: Major Players in Tokenized Treasuries - BlackRock has launched the BUIDL fund, the world's largest tokenized U.S. Treasury for institutional investors, valued at $2.2 billion and paying daily interest directly to wallets, 90% of which are on Ethereum [7] - Fidelity Asset Management has introduced the Fidelity Digital Interest Token (FDIT), a blockchain-based version of its Treasury money market fund, which mirrors shares of the Fidelity Treasury Digital Fund and is issued on the Ethereum network [8]

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]