Leading asset manager, Fidelity, quietly launched Fidelity Digital Interest Token (FDIT) on Ethereum last month. This blockchain-based version of its treasury fund has already attracted more than $200 million in assets without any public announcements.
The FDIT token stands for one share of Fidelity’s Treasury Digital Fund (FYOXX), giving users direct access to the firm’s portfolio that is made up entirely of U.S. Treasury securities and cash. According to data on rwa.xyz, the fund was started in August, with Bank of New York Mellon as its custodian.
Fidelity charges a 0.20% annual management fee for the tokenized fund, which puts it in a good position against other similar products in the growing tokenized Treasury market. The launch comes after the company filed with the U.S. Securities and Exchange Commission (SEC) to get permission to add an on-chain share class to its treasury fund.
The move by Fidelity also aligns with expert predictions that tokenized securities could be worth more than $2 trillion by 2030. Even though the fund has grown, it only has two recorded holders right now. One controls about $1 million in tokens, and the other manages the rest.
Rapidly Growing Tokenized Treasuries
The tokenized treasury market is now worth about $7 billion, with BlackRock’s BUIDL fund having more than $2 billion in assets. Franklin Templeton and WisdomTree are two other big asset managers that have released similar blockchain-based treasury products.
These funds allow users to get treasury exposure without having to go through traditional fund intermediaries. This method appeals to investors in digital assets who want regulated, yield-bearing options to stablecoins or other cryptocurrencies.
Also Read: Public Companies Now Hold Over 1 Million Bitcoin in Reserves
