Fidelity Quietly Launches $200M Ethereum-Based Treasury Fund

Fidelity Asset Management launched the Fidelity Digital Interest Token (FDIT) on Ethereum, creating a blockchain-based version of its Treasury fund that has already attracted over $200 million in assets without 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, according to data on rwa.xyz.

Fidelity charges a 0.20% annual management fee for the tokenized fund, positioning it competitively against similar products in the growing tokenized Treasury market. The launch follows the company's earlier SEC filing seeking approval to add an on-chain share class to its existing Treasury fund.

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.

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 move aligns with predictions that tokenized securities could exceed $2 trillion in value by 2030.

The Ethereum-based structure allows blockchain-native holders to access Treasury exposure without traditional fund intermediaries. This approach appeals to digital asset investors seeking regulated, yield-bearing alternatives to stablecoins or other crypto investments.

Fidelity has not provided public commentary on the FDIT launch, maintaining a low-profile approach while the product gains initial traction.