• Fidelity rolled out its FDIT token on Ethereum, giving people an easy way to invest in U.S. Treasuries on the blockchain.
  • It already has over $200 million in assets, with low fees and backing from regulators.
  • The market for tokenized Treasuries is growing fast, now around $7 billion.

Fidelity, a major asset manager, quietly rolled out its Fidelity Digital Interest Token, or FDIT, on the Ethereum blockchain last month. This tokenized version of its Treasury Digital Fund has already pulled in over $200 million in assets.

The token lets users hold shares in a fund made up of U.S. Treasury securities and cash. By giving them easy access to a stable, yield bearing investment on the blockchain.

A Growing Market for FDIT token

The FDIT represents one share of Fidelity’s Treasury Digital Fund, known as FYOXX, which launched in August with Bank of New York Mellon as custodian. According to data from rwa.xyz. Fidelity charges a 0.20% annual management fee, which is competitive in the tokenized Treasury market.

The fund has just two holders right now, one with about $1 million in tokens and the other with the rest. This launch came after Fidelity got the go ahead from the SEC to add a blockchain share class to its existing fund.

Experts think tokenized securities like this could be worth more than $2 trillion by 2030, thanks to better efficiency and 24/7 trading. The market for tokenized Treasuries has grown to about $7 billion. With BlackRock’s BUIDL fund leading the way at more than $2 billion in assets.

Franklin Templeton and WisdomTree also offer similar products, giving investors a way to tap into Treasuries without going through traditional middlemen.

Fidelity’s entry shows how major firms are leaning on blockchain. To make investing simpler for crypto users who want regulated options with returns, rather than just holding stablecoins.