• Fidelity launches a $200M tokenized Treasury fund using Ethereum to offer digital access to US securities.
• The fund uses an ERC20 token that allows on-chain transfers and 24/7 operational access for institutions.
• Fidelity joins major firms using blockchain to cut settlement time and boost transparency in asset management.

Fidelity has launched a tokenized version of its U.S. Treasuries money-market fund on the Ethereum blockchain. The fund is called the Fidelity Treasury Digital Fund (FYOXX). Investors can now access the fund through a digital token named Fidelity Digital Interest Token (FDIT). Each token represents one share of the fund and offers exposure to U.S. Treasury securities.

The token is developed as an ERC-20 asset, which can be transferred on-chain and settled in real-time. The infrastructure that Ethereum uses allows 24/7 operation and accelerates the speed of transactions. This setup also reduces the need for intermediaries in ownership and transfer processes.

Fidelity issued the tokens directly on Ethereum without a public announcement. Data shows the fund already holds over $200 million in assets. Two wallets currently control the entire token supply. One of these wallets holds the vast majority of the tokens.

Backed by U.S. Treasuries and Cash

The Fidelity Treasury Digital Fund began operations in August 2025. It only invests in U.S. Treasuries and short term cash instruments. The fund is under the custody of the Bank of New York Mellon. Fidelity applies a 0.20% annual management fee to the fund’s assets.

Earlier in March, Fidelity introduced OnChain shares on Ethereum for its Treasury fund offering transparency while it maintained traditional records.The asset management firm, which oversees approximately $5.9 trillion, would issue shares of its Fidelity Treasury Digital Fund (FYHXX) on the Ethereum blockchain. 

The FDIT token reflects ownership in this underlying portfolio. The structure also supports daily yield accrual without requiring lockups. Early reports confirm around 203.7 million tokens are already in circulation. Each token aligns with Fidelity’s registered on-chain contract.

Fidelity’s materials indicate that the fund integrates with existing blockchain-based products. It gains yield exposure through Ondo’s Short-Term U.S. Government Treasuries (OUSG). This tokenized asset backs the fund’s performance. Transfers and redemptions can be executed through stablecoins, enhancing liquidity.

Part of a Larger Market Shift

Fidelity’s move places it among several major asset managers adopting tokenization. Firms like Franklin Templeton and WisdomTree have launched similar blockchain-based funds. BlackRock remains the largest player in the space, with its BUIDL fund holding over $2.2 billion in assets. In March, BlackRock added Bitcoin ETF to $150B model portfolios with a 1-2% allocation marking a key shift in institutional investing.

These funds use blockchain to reduce settlement delays and increase transparency. Fidelity’s entry supports this broader shift toward digitized asset management. Public blockchains, such as Ethereum, provide cost-efficiency and programmable finance capabilities. The latter tools are attractive to institutional investors who want real-time information and systematization.

Fidelity’s broad distribution network may help scale this model further. Its reputation and client base could speed up institutional adoption.

Institutional Focus with DeFi Integration Potential

Fidelity designed FDIT for qualified institutional clients only. Access requires onboarding and compliance with financial regulations. However, future expansion to more users remains a possibility.

The fund’s Ethereum deployment allows compatibility with decentralized finance platforms. Features include smart contract automation and peer-to-peer functionality. Institutions may use these options to streamline operations or test blockchain-based workflows.

The fund’s structure shows growing trust in public blockchain rails for traditional financial instruments. Fidelity’s rollout highlights a steady shift in asset management toward digitized securities.