Fidelity Quietly Launches Ethereum-Based Tokenized Treasury Fund

Fidelity Investments has taken a major step into blockchain with the launch of the Fidelity Digital Interest Token (FDIT), a tokenized Treasury fund built on Ethereum. This quiet debut brings U.S. government debt exposure to the blockchain, designed exclusively for institutional investors.

What Is Fidelity’s FDIT?

FDIT is an ERC-20 token that represents shares of a U.S. Treasuries money-market fund. By issuing the token on Ethereum, Fidelity enables:

•24/7 transferability

•Onchain settlement and recordkeeping

•Peer-to-peer transfers

•Stablecoin redemptions

•Potential integration with DeFi applications

This makes FDIT more flexible than traditional funds while maintaining the safety of Treasury-backed exposure.

Backed by OUSG Treasuries

The token draws its value from Ondo Short-Term U.S. Government Treasuries (OUSG). OUSG invests in short-term Treasuries and money-market instruments, providing daily yield with no lockups. This structure allows FDIT to offer Treasury-like returns while using blockchain rails for efficiency.

The Fidelity Digital Interest Token (FDIT) bridges Treasuries with blockchain.

Early Growth and Competition

Since launch, FDIT has already surpassed $200 million in assets, with over 203 million tokens issued on Ethereum. For now, access is limited to qualified institutions, though Fidelity has suggested broader availability may come later.

FDIT enters a growing market for tokenized real-world assets (RWAs). Its main rival is BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL), which has attracted more than $2.2 billion in assets. Fidelity aims to compete by leveraging its global distribution network and strong brand.

A Quiet but Strategic Launch

Fidelity first hinted at this product in March 2025 under the name “Fidelity Treasury Digital Fund.” The September 2025 rollout came with little publicity, reflecting a low-key launch strategy aimed at institutional adoption rather than retail promotion.

Why It Matters

With FDIT, Fidelity signals that tokenized Treasury funds could reshape institutional finance. By using Ethereum’s liquidity, smart contracts, and ecosystem strength, the company highlights blockchain’s role in the future of settlement, recordkeeping, and fund management.

As tokenization grows, Fidelity’s move positions it at the center of a financial shift bringing traditional assets fully onchain.

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