DigiFT, a digital asset exchange licensed by the Monetary Authority of Singapore, has launched tokenized access to interests in a U.S. Treasury money market fund managed by Fidelity Investments. The offering is open to institutional and accredited investors who satisfy DigiFT's eligibility requirements, the company announced on Tuesday. The announcement does not name the underlying fund or the blockchain used for token issuance.
Product Structure and Reserve Alignment
Fidelity has been building its own on-chain infrastructure, including a 2025 filing for an OnChain share class of its Fidelity Treasury Digital Fund with ownership records mirrored on Ethereum. The underlying fund holds cash and short-dated U.S. Treasuries, which DigiFT notes meet the reserve asset criteria in the GENIUS Act for U.S. payment stablecoin issuers. That standard matters because tokenized Treasury funds now serve as collateral on trading venues and as yield-bearing places for stablecoin balances.
Institutional Perspective
Cynthia Lo Bessette, Head of Digital Asset Management at Fidelity Investments, said tokenization can expand access to investment products while enabling new forms of liquidity, collateral utility, and investment innovation through programmable infrastructure. Her comments reflect growing asset manager interest in on-chain fund structures beyond a single listing. Fidelity's earlier registry and infrastructure work suggests that the DigiFT product may form part of a broader digital asset strategy.
Platform Licenses and Track Record
DigiFT holds Capital Markets Services and Recognized Market Operator licenses from the Monetary Authority of Singapore. The company reports 42 completed token issuances spanning cash management, income strategies, equity exposure, alternative assets, and crypto allocation, with more than US$435 million in total subscriptions settled. This Fidelity listing extends the platform's cash management line, which already includes a UBS Asset Management tokenized money market fund launched in November 2024.
Competitive Landscape
The tokenized U.S. Treasury product category remains crowded, with distributed value of roughly US$14.8 billion, down 6.6% over the past 30 days according to RWA.xyz. Circle's USYC, Ondo's USDY, and BlackRock's BUIDL each hold between US$2.2 billion and US$2.4 billion, while the average seven-day yield across tracked products is around 3.7%. DigiFT's cumulative subscriptions across its 42 products represent a fraction of any single leading product, making distribution a more difficult challenge.
Next Phase and Use Cases
DigiFT said its next phase will focus on building on-chain use cases for existing assets rather than adding listings for their own sake. Henry Zhang, Founder and Group CEO, described the launch as part of an effort to build breadth and depth in institutional-grade options for on-chain capital. The release does not specify those use cases, and whether the product can be posted as collateral outside DigiFT will likely determine its ability to draw capital from established tokenized funds.
The launch signals continued institutional interest in tokenized Treasury products and highlights the role of regulated venues such as DigiFT in connecting traditional asset managers with on-chain capital. It also shows how reserve asset standards, collateral utility, and distribution reach are becoming central competitive factors in the market. As tokenized money market funds mature, their value will depend less on product availability and more on practical integration across trading, payments, and collateral networks.