Last week the CIO reported that Fidelity has gone live with its tokenized money market fund (MMF), which invests in short dated Treasuries. In reality Fidelity launched the fund in stealth mode around Christmas 2024, with assets under management surpassing $300 million by the end of August 2025.
In March it was widely reported that Fidelity had filed an SEC registration statement. At the time we noted that Ondo Finance had invested $75 million in a Fidelity Treasury fund and we wondered whether the fund was tokenized or conventional. Now Ondo’s investment in Fidelity’s Ethereum-based FYOXX has risen to $202 million, making up more than a quarter of the Ondo OUSG Treasury fund.
Attracting investments from stablecoin issuers and web3 funds is the key strategy, with market leader BlackRock’s BUIDL MMF reaching a market capitalization of $2.2 billion, largely based on this strategy. Currently Ethena’s USDtb stablecoin owns $1.1 billion in BUIDL and Ondo owns $250 million. But sometimes stablecoin investors can be flighty.
Article continues …
Want the full story? Pro subscribers get complete articles, exclusive industry analysis, and early access to legislative updates that keep you ahead of the competition. Join the professionals who are choosing deeper insights over surface level news.
