Fidelity's Ethereum-Based Money Market Fund Surpasses $200 Million in Assets

Boston, MA – Fidelity Investments has quietly launched the Fidelity Digital Interest Token (FDIT) on the Ethereum blockchain, a tokenized share class of its Treasury money market fund. The new offering has rapidly accumulated over $200 million in assets, marking a significant entry into the burgeoning real-world asset (RWA) tokenization market. This move positions Fidelity, which manages over $1.4 trillion in money market assets globally, as a direct competitor to existing tokenized Treasury products.

The FDIT fund is structured as an ERC20 token on the Ethereum network, allowing institutional investors to own, transfer, and settle shares digitally with 24/7 availability. It invests primarily in short-term U.S. Treasury securities and money market assets, mirroring the underlying Fidelity Treasury Digital Fund (FYOXX). The fund charges an annual management fee of 0.20%, with custody responsibilities handled by BNY Mellon.

The launch follows Fidelity's March 2025 filing with the U.S. Securities and Exchange Commission (SEC) to create an on-chain share class for its Treasury fund. Despite the substantial asset accumulation, Fidelity has provided minimal public commentary on the FDIT, leading some observers to describe it as a "stealth launch." This approach contrasts with the growing visibility of tokenized products from other major financial institutions.

The tokenized Treasury market has seen rapid expansion, with total U.S. money market assets reaching $7.26 trillion as of September 3, 2025. Fidelity's FDIT directly challenges BlackRock's BUIDL fund, which currently leads the sector with over $2 billion in assets. Analysts at McKinsey project the broader tokenized securities market could reach $2 trillion by 2030, underscoring the increasing institutional interest in leveraging blockchain technology for traditional financial products.

The adoption of blockchain rails by asset managers like Fidelity aims to enhance market efficiency, reduce settlement times, and lower operational costs. The integration of a traditional money market fund with a public blockchain like Ethereum highlights a growing trend of bridging conventional finance with decentralized infrastructure, offering new avenues for liquidity and accessibility within institutional investment.