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]

Fidelity has launched the Fidelity Digital Interest Token (FDIT), an on-chain money market fund backed by mostly U.S. Treasuries, mainly from Ondo Finance's Short-Term U.S. Treasuries Fund (OUSG) as the only anchor and largest investor. According to Ondo, OUSG makes up more than 99% of FDIT assets at this time. The launch is yet another milestone in the continued efforts by major asset managers to tokenize traditional financial products. Fidelity now joins BlackRock, Franklin Templeton, and WisdomTree i ...