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Tokenized real-world assets

Fidelity Treasury Digital Fund, OnChain class (FYOXX), FDIT token

Not approved No defect found; not on the approved list
Verdict
Not approved
No defect found; not on the approved list
Who can freeze it
No freeze key
Withdrawals
Orders run during business hours only.
Reviewed
2026-09-23 · next 2026-12-22
Researched memo

Summary

Ketju does not approve FDIT: Fidelity sells the OnChain class only to “certain institutional investors” with $1,000,000 to open, so a household cannot buy it. We found no defect in how the fund works. FDIT is a share of an ordinary government money market fund. Fidelity Treasury Digital Fund is a series of Fidelity Hereford Street Trust, registered under the Investment Company Act and advised by FMR. It “will not invest in any crypto assets.” Its OnChain class (FYOXX) shows each share on Ethereum as one FDIT token. The transfer agent’s books are the register, and the token is a copy. The transfer agent creates each investor’s wallet, holds its private key, and bars shares from any other wallet. One holder, Ondo I LP, owned 97.81 percent of the class on 30 April 2026. Class assets fell from $152.8 million in April to $31.1 million at the end of August.

Research

How it works

The holder owns a share of a government money market fund under Rule 2a-7, priced to hold $1.00. The fund holds Treasury securities, cash, and repos backed by them. The fund launched on 23 December 2024 and the OnChain class on 4 August 2025 (CUSIP 31617H813). The fund declares dividends daily, pays them monthly and reinvests them as new shares, which appear on chain as new tokens. A holder who redeems in full before the monthly payment gets dollars. Shareholders vote, with one vote per dollar of NAV. FMR pays network fees “at this time.” The fund’s other class, FYHXX, has no token.

Register

The prospectus states that the transfer agent’s “book-entry records will constitute the official record of the fund and govern the record ownership of fund shares in all circumstances.” Fidelity Investments Institutional Operations Company (FIIOC), an FMR affiliate and registered transfer agent, keeps the register in book-entry form. It “reconciles such official record with the secondary record of ownership of the class’s shares on one or more blockchains.” When FIIOC must correct an entry, it writes a new instruction to a later block and does not rewrite history.

In its answers to SEC staff in June 2025, Fidelity said investors may not hold shares in any other wallet and that the transfer agent keeps the private key. The holder therefore never controls the token, and the token only reports what FIIOC’s books show. If the chain and the books disagree, the books govern. The chain adds a public copy of the register and no new way to own or move the share.

Who controls it

The token uses a design written by DTCC. A dispatcher contract sends each function call to one of 16 “packages” that the token lists, and an updates repository can change those packages. The token has no standard proxy slot, so a standard check shows no upgrade path. On 23 September 2026 we read the packages. They provide an allowlist through a compliance module, a freeze (including a partial freeze of a balance), a pause, a clawback and batch clawback, and a mint. The package list itself can be replaced. We did not determine who holds these roles, because DTCC’s design grants them through role contexts that we have not yet decoded. No Fidelity document prints the contract address. The prospectus never uses the words “freeze” or “clawback.” However, it reserves the right to restrict accounts and to redeem an account involuntarily for suspected fraud.

Eligibility

Fidelity sells the class to institutions that complete the fund’s application and are resident in the United States or in approved jurisdictions abroad. The minimum to open is $1,000,000.

Withdrawals

Orders run during business hours only. Fidelity normally pays a wire redemption received in proper form before the 4:00 p.m. Eastern NAV on the same day. A redemption before 2:00 p.m. stops earning that day’s dividend. The fund may pay in securities. A holder has no other way to sell: there is no transfer to another holder, no exchange and no pool.

Size and holdings

The SAI lists Ondo I LP of Wilmington, Delaware, as owner of 97.81 percent of the OnChain class and 74.74 percent of the Liquidity class on 30 April 2026. On 23 September Etherscan showed two holders, one with 22.02 million tokens and one with 1.04 million. Ondo’s OUSG is the likely owner: its product page lists Fidelity Treasury Digital Fund (FYOXX) among its holdings. FDIT is therefore in practice a reserve asset for Ondo’s own tokenized funds. For an adviser, the class’s size and flows are one customer’s decisions. The class shrank by about 85 percent between April and September.

Comparison

Franklin’s BENJI uses the same register model, in which the transfer agent’s books govern. FDIT has no retail app, no holder-to-holder transfer and a $1,000,000 minimum. BlackRock’s BRSRV makes the chain the register and allows whitelisted transfers; FDIT keeps the chain as a copy. Compared with any Fidelity government money fund held at a custodian, FDIT adds nothing that a household can use.

Sources

Each claim above comes from one of these sources. Where Ketju could not verify a number, the memo states that.

The asset and the chain

This memo covers the protocol. A position also holds an asset and settles on a chain. Whichever of the three holds the most power over the position decides who can freeze it. These tables describe control and do not judge quality.

ChainVerdictFreezeWhat it can do
EthereumApproved No freeze key Ethereum has no sequencer, no upgrade key and no operator who can be compelled to act; rule changes require social consensus.
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