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

Research, firm shelf, model-client eligibility, and advisor selection are recorded separately. The scheduled date is the outside bound; new evidence can reopen the file sooner.

FDIT is a share of an ordinary government money market fund whose record is kept the old way. 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 chain is not the register: the prospectus says 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.” The token is a mirror, and a closed one. The transfer agent creates each investor’s wallet, holds its private key, and bars shares from any other wallet. There is no holder-to-holder transfer and no secondary market. What the chain adds is a public copy of the register, not a new way to own or move the share. We read the research as favorable with conditions and the model client as ineligible. The shares are sold only to “certain institutional investors” at $1,000,000, so a household cannot buy them. One holder, Ondo I LP, owned 97.81 percent of the class on 30 April 2026, which means FDIT is in practice a reserve asset for Ondo’s own tokenized funds. Class assets fell from $152.8 million in April to $31.1 million at the end of August. No Fidelity document prints the contract address.

Research triggers: events that reopen the assessment or shelf decision
• Fidelity opens the OnChain class to individuals or lowers the $1,000,000 minimum
• Fidelity allows holder-kept wallets, holder-to-holder transfer, or a secondary market
• The token’s package list or compliance module changes
• Fidelity publishes the contract address, or the class moves to another chain

The research file

What the holder owns

A share of a government money market fund under Rule 2a-7, priced to hold $1.00, holding 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). Dividends are declared daily, paid monthly, and reinvested as new shares, which appear on chain as new tokens; a holder who redeems in full before the monthly payment gets dollars. Shareholders vote, one vote per dollar of NAV. Network fees are paid by FMR “at this time.” The fund’s other class, FYHXX, has no token.

How the record works

Fidelity Investments Institutional Operations Company (FIIOC), an FMR affiliate and registered transfer agent, keeps the register in book-entry form and “reconciles such official record with the secondary record of ownership of the class’s shares on one or more blockchains.” When a correction is needed, the transfer agent writes a new instruction to a later block rather than rewriting history. In Fidelity’s answers to SEC staff in June 2025, the firm said investors may not hold shares in any other wallet and that the transfer agent keeps the private key. So the holder never controls the token; the token only reports what FIIOC’s books say. That is the issuer-indirect model: if the chain and the books disagree, the books win.

Who controls the token

The token uses a design written by DTCC: a dispatcher contract whose fallback sends each function call to one of 16 “packages” the token lists, and an updates repository that can change them. Our reader missed this at first because the token has no standard proxy slot, and reported no clawback and no upgrade path. We fixed the reader on 23 September 2026. It now finds an allowlist through a compliance module, a freeze (including a partial freeze of a balance), a pause, a clawback and batch clawback, a mint, and a package list that can be replaced. The reader did not resolve who holds these roles; DTCC’s design grants them through role contexts our reader does not yet decode. The prospectus never uses the words “freeze” or “clawback,” but it reserves the right to restrict accounts and to redeem one involuntarily for suspected fraud.

Who may hold, and the exit

Institutions that complete the fund’s application, resident in the United States or in approved jurisdictions abroad, with $1,000,000 to open. Orders run during business hours only. A wire redemption received in proper form before the 4:00 p.m. Eastern NAV is normally paid the same day, and a redemption before 2:00 p.m. stops earning that day’s dividend. The fund may pay in securities. There is no other exit: no transfer to another holder, no exchange, no pool.

Who holds it

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. Etherscan shows two holders, one with 22.02 million tokens and one with 1.04 million, on 23 September. Ondo’s OUSG is the likely owner: its product page lists Fidelity Treasury Digital Fund (FYOXX) among its holdings. For an adviser, the fact that matters is that the class’s size and flows are one customer’s decisions, and the class shrank by about 85 percent between April and September.

Comparison

Against Franklin’s BENJI, FDIT has the same record model (the transfer agent governs) but no retail app, no holder-to-holder transfer, and a $1,000,000 minimum. Against BlackRock’s BRSRV, which makes the chain the register and allows whitelisted transfers, FDIT keeps the chain as a copy. Against any Fidelity government money fund held at a custodian, FDIT adds nothing a household can use.

Sources

The claims above trace to these. Where a number could not be independently verified, the thesis says so.

• SEC EDGAR: Fidelity Hereford Street Trust 485BPOS, OnChain class prospectus and SAI dated 29 June 2026 · primary · accessed 2026-09-23
  Supports: registered government money market fund, no crypto assets, book-entry record governs, Ethereum secondary record, institutional investors, $1,000,000 minimum, transfer-agent wallets, no secondary market, same-day wire, corrections on a later block, involuntary redemption, dividends, voting, Ondo I LP 97.81%, class net assets April 2026
• SEC EDGAR: Fidelity response to SEC staff comments on the OnChain class (27 June 2025) · primary · accessed 2026-09-23
  Supports: transfer agent holds private keys
• Fidelity Institutional: OnChain class fact sheet · primary · accessed 2026-09-23
  Supports: CUSIP, class inception, net assets $31.07 million
• Sourcify: verified FDIT dispatcher and packages · primary · accessed 2026-09-23
  Supports: DTCC package design, freeze, clawback, updates repository
• Etherscan: Fidelity Digital Interest Token · secondary · accessed 2026-09-23
  Supports: deployer label, holders, supply
• Ondo Finance: OUSG product page, holdings · primary · accessed 2026-09-23
  Supports: OUSG holds FYOXX
• CoinGecko: Fidelity Digital Interest Token · secondary · accessed 2026-09-23
  Supports: market capitalization

Inherited controls

The research above describes the protocol layer. Every position also inherits the asset it holds and the chain it settles on. The most administered layer sets the position’s effective control grade; that is a control description, not a quality or suitability score.