Ethereum News Today: Ethereum Powers Fidelity’s $200M Treasury Token, RWA Adoption Gains Institutional Momentum

Fidelity Digital Assets has launched a $203.6 million tokenized Treasury fund on the Ethereum blockchain, marking a significant step in institutional adoption of blockchain-based financial products. The Fidelity Digital Interest Token (FDIT) represents a share of the Fidelity Treasury Digital Fund (FYOXX), which is fully backed by U.S. Treasuries and cash. The fund commenced operations in August 2025 with a custodial arrangement managed by the Bank of New York Mellon, ensuring traditional oversight while leveraging blockchain’s efficiency [1].

The FDIT is issued as an ERC-20 token and charges an annual management fee of 0.20%, positioning it competitively within the tokenized Treasury market. Despite its substantial AUM, the fund remains highly concentrated, with only two holders recorded—one controlling nearly $1 million in tokens and the other managing the remaining balance. This limited participation suggests that the product is still in its early adoption phase, primarily targeting institutional investors [2].

Fidelity’s move follows its earlier SEC filing seeking approval to introduce an on-chain share class for its Treasury fund. This initiative underscores a growing commitment to real-world asset (RWA) tokenization and signals broader institutional interest in blockchain infrastructure. The launch aligns with a trend among global asset managers, including BlackRock and WisdomTree, who are exploring similar blockchain-based products to enhance market efficiency and reduce settlement times [3].

BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) remains the largest in this space, with assets exceeding $2 billion. Fidelity’s FDIT now joins a rapidly expanding market, where tokenized Treasuries are valued at over $7 billion globally. Analysts from McKinsey forecast that tokenized securities could surpass $2 trillion in value by 2030, highlighting the potential for institutional-scale adoption of blockchain-backed assets [4].

The FDIT’s Ethereum-based structure allows for 24/7 transferability and enables direct exposure to U.S. Treasury securities without intermediaries. This approach appeals to investors seeking regulated, yield-bearing alternatives to traditional crypto assets. The fund’s underlying exposure includes the OUSG token, which holds short-term U.S. Treasuries and money market assets, providing liquidity benefits while maintaining a stable net asset value (NAV) [5].

While Fidelity has not publicly commented on the FDIT’s launch, the product’s growth reflects broader institutional confidence in Ethereum-based financial tools. The move reinforces the growing integration of blockchain technology in traditional finance and highlights the potential for tokenized assets to redefine asset management, collateral usage, and settlement efficiency. As Fidelity, BlackRock, and JPMorgan each pursue different strategies in tokenized securities, the sector is entering a phase of diversification and innovation that could reshape global financial markets [6].

Source:

[1] Fidelity Rolls Out Blockchain Treasury Fund With $200M in Assets (https://coincentral.com/fidelity-rolls-out-blockchain-treasury-fund-with-200m-in-assets/)

[2] Fidelity Launches New Tokenized Fund as Market Nears (https://www.mitrade.com/insights/news/live-news/article-3-1104912-20250908)

[3] Fidelity’s FDIT vs BlackRock’s BUIDL vs JPMorgan’s JPMD (https://www.ccn.com/education/crypto/fidelity-fdit-vs-blackrock-buidl-jpmorgan-jpmd-differences-explained/)

[4] Ethereum Hosts Fidelity's $200M Tokenized Treasury Fund (https://coinpedia.org/news/ethereum-hosts-fidelitys-200m-tokenized-treasury-fund-challenging-blackrocks-lead/)

[5] Fidelity Quietly Launches $200M Ethereum-Based Treasury Fund (https://www.blockhead.co/2025/09/08/fidelity-quietly-launches-200m-ethereum-based-treasury-fund/)

[6] Fidelity Quietly Launches Tokenized Treasury Fund on Ethereum (https://beincrypto.com/fidelity-tokenized-treasury-fund-on-ethereum/)