Fidelity Asset Management has launched the Fidelity Digital Interest Token (FDIT) on the Ethereum blockchain, creating a tokenized version of its Treasury fund that has already attracted over $200 million in assets without any public announcement. The FDIT token represents one share of Fidelity's Treasury Digital Fund (FYOXX), providing direct blockchain access to a portfolio consisting entirely of U.S. Treasury securities and cash.
The fund began operations in August with Bank of New York Mellon serving as custodian. Fidelity charges a 0.20% annual management fee for the tokenized fund, positioning it competitively in the growing tokenized Treasury market. Despite reaching significant scale, the fund currently has only two recorded holders, with one controlling approximately $1 million in tokens while the other manages the remaining balance.
This launch follows Fidelity's earlier SEC filing seeking approval to add an on-chain share class to its existing Treasury fund. The tokenized Treasury market has grown to approximately $7 billion, led by BlackRock's BUIDL fund with over $2 billion in assets. Other major asset managers including Franklin Templeton and WisdomTree have launched similar blockchain-based Treasury products.
Fidelity's entry into tokenized securities reflects broader industry adoption of blockchain infrastructure to reduce settlement times, enhance transparency, and improve cost efficiency. The Ethereum-based structure allows blockchain-native holders to access Treasury exposure without traditional fund intermediaries, appealing to digital asset investors seeking regulated, yield-bearing alternatives to stablecoins or other crypto investments.
