Fidelity Asset Management has launched a blockchain-based version of its Treasury money market fund, introducing the Fidelity Digital Interest Token (FDIT) on the Ethereum network.
The token represents shares in the Fidelity Treasury Digital Fund (FYOXX) and is part of a growing trend in traditional finance to bring real-world assets (RWAs) on-chain. The fund, which began operating in August, holds over $200 millionin assets, consisting entirely of U.S. Treasury securities and cash.
FDIT is issued directly on Ethereum and carries a 0.20% management fee. Bank of New York Mellon acts as the fund’s custodian. Despite the size of the fund, on-chain data shows that only two wallets currently hold the tokenized shares—one with approximately $1 million and the other with the remainder.
Fidelity has not made a public announcement about the launch, but the move follows a filing with the U.S. Securities and Exchange Commission (SEC) seeking approval to add an on-chain share class to its money market fund.
The move places Fidelity in direct competition with BlackRock, whose BUIDL fund currently leads the $7 billion tokenized Treasury market. Other major firms like Franklin Templeton and WisdomTree have also entered the space, signaling increasing institutional interest in asset tokenization.
According to analysts at McKinsey, tokenized securities could grow into a $2 trillion market by the end of the decade.
Featured image from: thedefiant.com