Ethereum News Today: Fidelity Tokenizes Treasuries—Rewriting the Rules of Institutional Finance

Fidelity Investments has quietly introduced a tokenized Treasury fund, the Fidelity Digital Interest Token (FDIT), on the Ethereum blockchain. The product represents a blockchain-based share class of its Fidelity Treasury Digital Fund (FYOXX), offering investors exposure to U.S. Treasury securities and cash. As of the latest available data, the fund has already surpassed $203.7 million in assets under management, according to multiple sources including RWA.xyz and Fomoed.io [1][4]. This marks Fidelity’s latest strategic step into the tokenization of real-world assets (RWAs), a sector that is rapidly gaining traction in traditional finance [1].

FDIT operates as a 1:1 representation of a share in the Fidelity Treasury Digital Fund, with tokens issued directly on the Ethereum network. The fund is backed by U.S. Treasury bonds and allows for direct redemption of fund shares. Fidelity charges a 0.20% management fee, while custody of the assets is managed by the Bank of New York Mellon [1]. Despite the significant asset value, the fund's participation remains limited, with just two holders at the time of reporting—one holding approximately $1 million in tokens and the other controlling the remainder [1].

The launch of FDIT positions Fidelity as a direct competitor to BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), the largest tokenized Treasury product, which has amassed over $2 billion in assets [1]. The broader tokenized Treasury market, which includes offerings from firms such as Franklin Templeton and WisdomTree, has now exceeded $7 billion in total assets under management. Analysts at McKinsey have projected that the market for tokenized securities could grow to $2 trillion before the end of the decade [1]. Fidelity’s entry into this space is therefore not only a competitive move but also a strategic investment in the future of asset management.

The fund’s launch follows Fidelity’s earlier filing with the U.S. Securities and Exchange Commission (SEC) to introduce an on-chain share class to its digital Treasury fund, signaling a long-term commitment to blockchain-based asset structures [1]. Over the past year, traditional financial institutions have increasingly explored blockchain technology to improve market efficiency, reduce settlement times, and cut operational costs. Fidelity’s FDIT represents a tangible outcome of this trend, offering institutional-grade access to digital finance.

Ethereum, the blockchain platform hosting FDIT, has seen a surge in institutional interest in recent months. With a current market price of $4,300.30 and a market cap of $519.07 billion, Ethereum remains a dominant force in the crypto ecosystem [4]. Industry analysts suggest that blockchain-based funds like FDIT could significantly reshape traditional asset management as regulatory clarity improves and institutional adoption accelerates [4]. Fidelity’s FDIT thus not only reflects the firm’s innovation in asset management but also highlights the growing convergence between traditional and digital finance.

Source:

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

[2] Fidelity Launches Tokenized Money Market Fund Where Financial Backing is Provided by BlackRock (https://medium.com/@compassInvestment/fidelity-launches-tokenized-money-market-fund-where-financial-backing-is-provided-by-blackrock-227ca699bbdf)

[3] Fidelity's On-Chain Tokenized Fund FDIT Surpasses $200 Million in Scale (https://www.bitget.com/news/detail/12560604954486)

[4] Fidelity's Tokenized Fund FDIT Surpasses $200 Million AUM (https://www.fomoed.io/news/fidelitys-tokenized-fund-fdit-surpasses-200-million-aum)