- Fidelity quietly launches $200M tokenized Treasury fund on Ethereum with only two holders.
- FDIT tokens link U.S. Treasuries to Ethereum, charging a 0.20% fee and using BNY Mellon as custodian.
- Tokenized Treasury market tops $7B, led by BlackRock, with projections of $2T by decade’s end.
Financial giant Fidelity is officially taking on BlackRock in the tokenized Treasury market. The firm has quietly launched its own tokenized Treasury product on Ethereum, the Fidelity Digital Interest Token (FDIT), seeding it with over $200 million in a direct challenge to its rival’s dominant BUIDL fund. The move, confirmed by blockchain records and SEC filings, was made with no public announcement.
Breakdown of Fidelity’s New FDIT Token
The new fund is designed to bridge traditional assets with blockchain infrastructure, offering investors direct, on-chain exposure to U.S. government debt.
What is the fund’s structure?
Each FDIT token provides exposure to U.S. Treasury securities through the FYOXX fund. The leading portfolio, which began operating in August, is entirely made up of Treasuries and cash. Fidelity applies a management fee of 0.20% annually, while the Bank of New York Mellon handles custody responsibilities.
Related: Fidelity Joins the Tokenized US Treasury Bills Race, Taking on BlackRock’s BUIDL Fund
The decision to tokenize shares of FYOXX connects traditional assets to blockchain infrastructure. By placing the tokens directly on Ethereum, the structure allows investors already active on blockchain networks to hold Treasury-backed instruments without leaving the digital ecosystem.
Filing and Strategic Direction
The quiet launch follows a filing earlier this year with the U.S. Securities and Exchange Commission (SEC). In that filing, Fidelity sought approval to create an on-chain share class for its Treasury fund. The following issuance of FDIT signals execution of that plan, extending the company’s presence in real-world asset tokenization.
Global asset managers have been exploring blockchain rails to cut settlement times, improve transparency, and reduce operational costs. Fidelity’s entry aligns with this broader direction, where traditional financial products are adapted for digital distribution.
Expanding Market for Tokenized Treasuries
The tokenized Treasury market has been growing steadily, attracting some of the largest investment firms. Franklin Templeton and WisdomTree have already launched blockchain-based funds, while BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) has grown into the largest player with more than $2 billion in assets.
Figures from RWA.xyz show the total market value of tokenized Treasuries now exceeds $7 billion.
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