Tokenized Money Funds Cut Their Maturities 39% Before the Fed Hiked. Fidelity's US$463 Billion Government Fund Barely Moved.
Between June and August, the four tokenized government money market funds we track that report to the SEC cut their weighted-average maturity from an average of 37 days to 22. Over the same months, Fidelity's conventional government and Treasury funds stayed between 42 and 49 days. In the last filings before the Fed raised rates on September 16, the tokenized funds held the shortest paper in the comparison, the position that passes a rate increase through to holders fastest.
- From June 30 to August 31, 2026, the four tokenized government money market funds we track that report to the SEC (BENJI, JLTXX, WTGXX and FDIT) cut their average weighted-average maturity from 37 days to 22, a 39% reduction, according to their Form N-MFP filings. see data →
- Fidelity's three conventional government and Treasury money funds, including its US$463 billion Government Money Market Fund, moved from an average of 46 days to 45 over the same period. On August 31, every tokenized fund had a shorter maturity than every conventional comparison fund. see data →
- The Fed raised rates to 3.75%–4.00% on September 16, 2026. Short portfolios pass a rate increase through to holders faster, consistent with tokenized funds' growing use as stablecoin reserves and trading collateral. see data →
Revised October 2, 2026: figures corrected.
In July, the market began to price a rate increase. As oil prices climbed, the odds of a Fed hike rose sharply, and the forecasts that followed were divided. On September 16, the Federal Reserve raised the federal funds target range to 3.75%–4.00%, its first increase in more than three years. The monthly filings that money-market funds submit to the SEC show which funds had shortened their portfolios in the months before. The tokenized funds had shortened theirs sharply; Fidelity's conventional government funds had not.
Weighted-average maturity (WAM) measures how many days a money fund's holdings have, on average, until they mature or reset. A shorter WAM means the portfolio rolls into new yields sooner. Between June 30 and August 31, the four tokenized government money market funds we track that report to the SEC cut their average WAM from 37 days to 22, a 39% reduction. WisdomTree's WTGXX went from 43 days to 19, JPMorgan's JLTXX from 26 to 13, and Franklin's BENJI from 53 to 37. Fidelity's FDIT stood at 20 days, after rising to 35 in July.
The conventional funds stayed where they were
The comparison that isolates the tokenized funds is Fidelity, which files for both kinds of fund under the same SEC registrant. Over the same three months, its US$463 billion Government Money Market Fund moved from 47 days to 42, its Treasury Only fund from 48 to 49, and its Flex Government fund held at 44. On August 31, all four tokenized funds had shorter maturities than any of the three. The shortest conventional portfolio in the comparison, at 42 days, was still more than three times the length of JLTXX's.
Fig 1 — Weighted-average maturity, Aug 31, 2026
Every tokenized fund sat shorter than the conventional ones
Weighted-average maturity in days, as reported in each fund's Form N-MFP for August 31, 2026. The four tokenized money market funds (green) range from 13 to 37 days. Fidelity's three conventional government and Treasury money funds (grey) range from 42 to 49 days.
| Fund | Jun 30 | Jul 31 | Aug 31 | Net assets, Aug 31 |
|---|---|---|---|---|
| WisdomTree WTGXX (tokenized) | 43 | 30 | 19 | US$1.02B |
| JPMorgan JLTXX (tokenized) | 26 | 19 | 13 | US$777.29M |
| Franklin BENJI (tokenized) | 53 | 45 | 37 | US$686.64M |
| Fidelity FDIT (tokenized) | 25 | 35 | 20 | US$51.62M |
| Fidelity Government MMF | 47 | 46 | 42 | US$463.11B |
| Fidelity Treasury Only MMF | 48 | 49 | 49 | US$19.57B |
| Fidelity Flex Government MMF | 44 | 44 | 44 | US$221.65M |
What the filings do not show
A filing reports a portfolio; it does not state a view. WAM also moves with cash flows. New money is usually placed in the shortest paper first, and WTGXX's net assets grew from US$717 million to US$1.02 billion over the period, which accounts for part of its decline. Flows do not explain the pattern as a whole, however. BENJI shortened while its assets fell from US$753 million to US$687 million, and JLTXX shortened through both a rise and a decline in assets. The move is also not a permanent trait. BENJI's 37 days in August remains above the 18-to-31-day range it held through 2025, and the reduction reverses an extension it made in the spring. Fidelity's prime money market fund, which holds bank and corporate paper rather than government securities, also shortened, from 33 days to 21, so the comparison is limited to government and Treasury portfolios.
Why it matters
The first consequence is timing. A fund with a 13-to-20-day maturity replaces or resets most of its portfolio within weeks, so holders of JLTXX, WTGXX and FDIT should receive the higher post-hike rate sooner than holders of a 45-day conventional fund. For an asset that competes directly with stablecoins that pay no yield, the speed at which a rate increase reaches the holder is a significant part of the product.
The second consequence is function. Tokenized money funds increasingly serve as reserve assets for stablecoin issuers and as trading collateral, uses that require the value of a token to hold steady on a given day more than they require the last basis point of yield. Short portfolios carry less sensitivity to further rate increases. The filings suggest the tokenized funds are positioned as operating cash for onchain markets rather than as a digital share class of the flagship fund. The tokenized fund and the conventional fund share a legal form but are positioned differently.
The trade-off runs the other way if the rate path turns. In August, weak July payrolls and retail sales led some forecasters to question whether further increases would follow. A short portfolio captures a rising rate quickly and gives up yield quickly if rates fall. The September filings, due in early October, will show whether the managers kept shortening after the hike or began to extend. Continued shortening would indicate that they expect further increases, and an extension would indicate that they regard the hike as the peak. The larger question is whether tokenized money funds settle into a permanently shorter, collateral-grade profile, and if so, whether that profile becomes the standard that the conventional funds are measured against.
Weighted-average maturity for each fund is the averagePortfolioMaturity field of its Form N-MFP for June 30, July 31 and August 31, 2026. The August figures were re-read directly from the SEC filings: BENJI 37, WTGXX 19, JLTXX 13, FDIT 20, Fidelity Government MMF 42 and Fidelity Treasury Only MMF 49 days.
SEC EDGAR Form N-MFP · Franklin OnChain U.S. Government Money Fund, Aug 31, 2026On September 16, 2026, the Federal Open Market Committee raised the federal funds target range by 25 basis points to 3.75%–4.00%. News coverage described it as the first increase in more than three years. The filings in this report are as of August 31, before the decision.
Federal Reserve implementation note, Sep 16, 2026The tokenized set is every tokenized money market fund we track that files Form N-MFP with the SEC: BENJI, JLTXX, WTGXX and FDIT. The SEC filings classify all four, and all three conventional comparison funds, as government money market funds. Tokenized funds outside our coverage are not included. Fidelity Reserves Digital Fund, launched in June for stablecoin reserves, has no onchain share class and is not counted as tokenized. Privately offered tokenized funds, including BlackRock's BUIDL, Circle's USYC and Ondo's OUSG, do not file N-MFP and are outside the comparison. The conventional comparison is Fidelity's three government and Treasury money funds, which share a filer with FDIT. FDIT's portfolio also backs a conventional Liquidity share class.
Coverage notes · onchainbenchmark.com/methodology- How did tokenized money funds position before the September 2026 Fed hike?
- They shortened their portfolios. Between June 30 and August 31, 2026, the average weighted-average maturity of BENJI, JLTXX, WTGXX and FDIT fell from 37 days to 22, according to their SEC Form N-MFP filings. Fidelity's conventional government and Treasury money funds held between 42 and 49 days.
- Does a shorter maturity mean holders earn the higher rate sooner?
- Generally, yes. A fund with a 13-to-20-day maturity replaces or resets most of its holdings within weeks, so its yield adjusts to a new policy rate faster than a fund with a 45-day maturity. The effect also applies in reverse when rates fall.
- Were the shorter maturities a bet on the Fed?
- The filings report positions, not intentions. Maturity also changes with inflows and outflows. WisdomTree's WTGXX grew by about US$300 million over the period, which accounts for part of its decline, but BENJI and JLTXX shortened while their assets fell.