Fidelity intends to convert Treasury securities into digital assets (tokens)

In the rapidly evolving world of digital assets, Fidelity Investments has taken a significant step forward with its Fidelity Treasury Digital Fund (Ticker: FYHXX). As of early August 2025, the fund is actively available, priced at a stable NAV of $1.00, and offers yields ranging from 2.9% to 4.15% depending on the measurement period[1][2].

This fund marks Fidelity’s foray into tokenized Treasury offerings, aimed at integrating digital assets within money market structures for enhanced liquidity. In comparison, BlackRock’s BUIDL, a digital asset initiative targeting institutional products, and Hashnote’s USYC, another tokenized Treasury offering, are at different stages of development.

Fidelity’s fund is a fully operational liquidity fund, boasting daily pricing and yield monitoring. In contrast, BlackRock’s BUIDL and Hashnote’s USYC are either emphasizing infrastructure or lacking available yield data for direct comparison. The key distinctions are outlined in the table below:

| Parameter | Fidelity Treasury Digital Fund | BlackRock BUIDL | Hashnote USYC | |------------------------------|----------------------------------------------|--------------------------------|-----------------------------| | Fund Status | Active, daily NAV $1.00, regular yield data | Initiative/platform in progress | Active, but specifics unclear| | Transparency on NAV & Yield | Published NAV and yield data publicly | Not detailed in search results | Not detailed in search results| | Focus | Tokenized Treasury fund with liquidity goals | Digital asset infrastructure | Tokenized Treasury with digital asset focus |

The steady yield and NAV stability of Fidelity’s fund suggest ongoing active management aimed at maintaining liquidity and yield in a tokenized Treasury environment. Meanwhile, BlackRock and Hashnote, known for their roles in tokenization, may focus on expanding product offerings or deeper integrations with institutional digital asset trading and custody in the future.

Fidelity’s fund tokens can initially only be held via the Fidelity wallet, and the primary records of ownership will be conventional, reconciled with the blockchain daily. The fund's total market capitalization is approaching $5 billion, with the Fidelity Treasury Digital Fund representing a mature stage of product deployment in the tokenized Treasury market.

Meanwhile, Ondo Finance, with $75 million invested in a non-tokenized Fidelity fund, and Hashnote’s USYC, which has 95% of its tokens invested in the Usual stablecoin, are also players in this growing market. Ondo Finance's OUSG fund primarily comprises other tokenized funds like BUIDL, Franklin Templeton's FOBXX, and WisdomTree's WTGXX.

As the tokenized Treasury market continues to grow, Fidelity’s Treasury Digital Fund stands out as a well-established and transparent option for investors seeking liquidity and digital asset integration within money market structures.

[1] Fidelity Treasury Digital Fund NAV and Yield Data: https://www.fidelity.com/fixed-income/funds/FYHXX [2] Fidelity Treasury Digital Fund Overview: https://www.fidelity.com/funds/FYHXX/overview [3] BlackRock BUIDL Overview: https://www.blackrock.com/corporate/institutional/investment-solutions/digital-asset-investment-strategies [4] Hashnote USYC Overview: https://www.hashnote.io/usyc [5] Ondo Finance Overview: https://ondo.finance/ [6] Hashnote's USYC Stablecoin Reserves: https://www.coingecko.com/en/coins/usytb [7] Ondo Finance's OUSG Fund Composition: https://ondo.finance/funds/OUSG [8] Total Market Capitalization of Tokenized Treasuries: https://www.coingecko.com/en/coins/tokenized-treasury

Fidelity's Treasury Digital Fund, a tokenized Treasury offering, operates as a liquidity fund with daily pricing and yield monitoring in the digital assets market, making it a transparent and established choice for investors seeking integration within money market structures.
Amidst competitors like BlackRock's BUIDL, focused on digital asset infrastructure, and Hashnote's USYC, with a focus on tokenized Treasuries, Fidelity's fund stands out for its ongoing active management aimed at maintaining liquidity and yield in the tokenized Treasury environment.
Aside from Fidelity's fund, Ondo Finance and Hashnote's USYC are also players in the growing tokenized Treasury market, each with different investment strategies – Ondo Finance investing in non-tokenized Fidelity funds, and Hashnote’s USYC investing heavily in the Usual stablecoin.
The blockchain technology underpins Fidelity's fund, allowing for the primary records of ownership to be reconciled daily with the blockchain, while the fund's market capitalization approaches $5 billion, signifying a mature stage in the tokenized Treasury market's product deployment.