Compass Investments

– Fidelity Digital Interest Token (FDIT) has over $200 million in assets.

Fidelity charges a 0.20% annual management fee and Bank of New York Mellon serves as the fund’s custodian.

BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) remains the leader among tokenized treasury products, with a value of over $2 billion.

Fidelity Asset Management has launched a blockchain version of its money market fund directly on the Ethereum network. The new product, Fidelity Digital Interest Token (FDIT), has over $200 million in assets. This is a significant step taken by Fidelity towards tokenizing real assets using blockchain technology.

FDIT represents one share of Fidelity Treasury Fund (FYOXX), providing tokenized access to U.S. Treasury bonds. This structure gives blockchain holders direct access to U.S. Treasury securities.

Fund launched in August with a portfolio consisting only of U.S. Treasury bonds and cash. Fidelity charges a 0.20% annual management fee, and Bank of New York Mellon serves as custodian of the fund, providing financial oversight and security.

The company has not publicly announced the launch of FDIT, but data confirms that the fund’s assets have already surpassed $200 million. Current records also show that the fund has only two holders, one of whom owns about $1 million worth of tokens and the other manages the balance.

Fidelity’s entry into the market could accelerate the pace of adoption of tokenized funds among institutional investors. It could also expand market participation if its blockchain infrastructure gains credibility. Since FDIT works as an ERC20 token on Ethereum, it allows institutions to own, transfer and settle shares digitally, providing 24/7 accessibility.

It allows investors to move tokens on peer-to-peer (P2P) networks and instantly redeem them into stable coins. It can also interact with DeFi apps if needed.

In addition, the fund itself invests in OUSG, which holds short-term U.S. Treasury bonds and money market assets. This arrangement allows FDIT to provide investors with Treasury-like returns while taking advantage of Ethereum’s speed and transparency.

In the past year, global asset managers have been experimenting with blockchain technology to make markets more efficient, faster and more accessible. Franklin Templeton, WisdomTree and BlackRock have all taken notice.

As of now, BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) remains the largest tokenized treasury product, valued at over $2 billion. Analysts at McKinsey, who are closely following this institutional rollout, have estimated that the market value of tokenized securities could reach $2 trillion by 2030, as reported by CoinCentral.