TLDR
- Fidelity has launched a tokenized Treasury fund called the Fidelity Digital Interest Token on the Ethereum blockchain.
- The token represents one share of the Fidelity Treasury Digital Fund which U.S. Treasuries and cash fully back.
- Fidelity has not made a public announcement about the launch of this digital fund.
- The fund has already surpassed $200 million in assets with only two holders recorded so far.
- Fidelity filed with the SEC earlier this year to add an on-chain share class to its Treasury fund.
Fidelity has launched a blockchain-based Treasury fund called the Fidelity Digital Interest Token (FDIT) on Ethereum. The token represents one share of the Fidelity Treasury Digital Fund (FYOXX), offering tokenized access to U.S. Treasuries. This marks a strategic move by Fidelity into real-world asset tokenization via blockchain technology.
Fidelity Introduces FDIT on Ethereum
Fidelity issued the Fidelity Digital Interest Token (FDIT) directly on the Ethereum blockchain. The token reflects one share of the Fidelity Treasury Digital Fund (FYOXX). This structure allows blockchain-native holders to gain direct exposure to U.S. Treasury securities.
The fund began operations in August with a portfolio consisting only of U.S. Treasuries and cash. Fidelity applies a management fee of 0.20% annually to the fund. The Bank of New York Mellon serves as the fund’s custodian.
Fidelity has not publicly announced the launch of the FDIT. However, records confirm that the fund has already reached over $200 million in assets. It currently has only two holders, one controlling nearly all of the token supply.
Tokenized Treasuries Gain Market Share
Fidelity’s launch follows its previous filing with the SEC for an on-chain share class. That filing signaled its growing commitment to asset tokenization using blockchain infrastructure. The move supports wider adoption of tokenized securities within traditional finance.
Global asset managers are increasingly issuing tokenized products on blockchain networks. These offerings aim to reduce settlement times and enhance transparency and cost-efficiency. Fidelity’s new product reflects this broader trend in financial innovation.
The digital fund enters a fast-growing tokenized Treasury market already led by large players. Fidelity joins peers like Franklin Templeton and WisdomTree, who offer similar blockchain-based products. BlackRock’s BUIDL fund remains the largest, with over $2 billion in assets.
Fidelity’s entry could accelerate the pace of tokenized fund adoption across institutional investors. With blockchain rails gaining trust, market participation may broaden. Analysts at McKinsey forecast tokenized securities could exceed $2 trillion in value by 2030.
