Fidelity Launches $200M Tokenized Treasury Fund on Ethereu

Fidelity Asset Management has launched a blockchain version of its treasury money market fund on the Ethereum Network.

Written by: Sophia Cruz • Monday, September 8, 2025 • 2 min read

• Last updated: Monday, September 8, 2025

Quick overview

Fidelity Asset Management has launched the Fidelity Digital Interest Token (FDIT), a blockchain version of its treasury money market fund on the Ethereum Network, with over $200 million in assets.
The token, created as an ERC-20 asset, allows for on-chain transfers and real-time settlement, reducing reliance on intermediaries.
Fidelity's discreet launch of FDIT aims to enhance transparency and accelerate the adoption of tokenized funds among institutional investors.
Investors can utilize a peer-to-peer system to transfer tokens and redeem them for stablecoins, while the fund focuses on U.S. Treasuries and short-term cash instruments.

Fidelity Asset Management has launched a blockchain version of its treasury money market fund on the Ethereum Network. Fidelity Digital Interest Token (FDIT) is the name of the new product. It has more than $200 million in assets. This is a big step for Fidelity toward using blockchain technology to tokenize real-world assets.

The token has been created as an ERC-20 asset, allowing for on-chain transfers and real-time settlement. The framework supporting Ethereum enables continuous operation and enhances transaction speeds significantly. This arrangement minimizes the reliance on intermediaries when it comes to ownership and transfer processes.

Fidelity quietly launched the tokens on Ethereum, opting for a discreet approach rather than a public announcement. The fund currently boasts assets exceeding $200 million, according to recent data. At present, the entire token supply is dominated by just two wallets. A significant portion of the tokens is contained within one of these wallets.

The Fidelity Treasury Digital Fund commenced its operations in August 2025. The investment strategy is focused solely on U.S. Treasuries and short-term cash instruments. The Bank of New York Mellon is currently responsible for the custody of the fund. Fidelity imposes an annual management fee of 0.20% on the assets of the fund.

In early March, Fidelity launched OnChain shares on Ethereum for its Treasury fund, providing a layer of transparency while still upholding conventional record-keeping practices.An asset management firm managing around $5.9 trillion is set to launch shares of its Fidelity Treasury Digital Fund (FYHXX) on the Ethereum blockchain.

Fidelity’s involvement may accelerate the adoption of tokenized funds among institutional investors. Trust in its blockchain infrastructure could potentially expand market participation. FDIT operates similarly to an ERC20 token on the Ethereum network, enabling institutions to digitally own, transfer, and settle shares 24/7.

Investors can transfer tokens through a peer-to-peer (P2P) system and quickly redeem them for stablecoins. It has the capability to engage with DeFi applications when beneficial.

The fund also allocates resources to OUSG, which manages short-term US treasuries and money market assets. This arrangement enables FDIT to provide investors with returns akin to those of Treasury securities, all while leveraging the speed and transparency offered by the Ethereum network.

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ABOUT THE AUTHOR See More

Sophia Cruz

Financial Writer - Asian & European Desks

Sophia is an experienced writer, reporter and newsdesk member, mostly on the financial sectors. For the past 5 years Sophia has covered a wide variety of topics such as the financial markets, economics, technology, fin-tech and trading. Sophia has been a part of the FX Leaders team since 2017 and works on producing valuable content and information for traders of all levels of experience.