Fidelity Investments has quietly launched an onchain tokenized share class of a U.S. Treasuries money-market fund on Ethereum, introducing the Fidelity Digital Interest Token (FDIT) for institutional clients. This move marks another major step by a traditional financial giant into digital assets, positioning FDIT as a direct competitor to BlackRock's USD Institutional Digital Liquidity Fund (BUIDL).
FDIT: An ERC20 Token for Institutional Treasury Exposure
FDIT is structured as an ERC20 token that records ownership, transfers, and settlement onchain, offering 24/7 transferability and operational features tailored for institutions. The product provides blockchain-based bookkeeping with support for peer-to-peer (P2P) transfers and instant redemptions via stablecoins, while also aiming to interface with decentralized finance (DeFi) applications where appropriate.
According to materials describing the launch, the fund's underlying exposure centers on OUSG (Ondo Short-Term U.S. Government Treasuries), a tokenized product backed by short-duration Treasuries and money-market instruments. OUSG accrues yield daily with no lockups, allowing FDIT to target Treasury-like returns while leveraging Ethereum's rails for issuance and transfer.
Early Scale Above $200 Million, Quiet Launch Draws Attention
Early figures place FDIT's assets above $200 million shortly after launch, with approximately 203.7 million tokens outstanding and a published contract address on Ethereum. The sponsor materials describe the token as a Fidelity-managed share class intended for qualified purchasers and institutional use.
Public documentation indicates Fidelity first signaled plans back in March 2025 under the name “Fidelity Treasury Digital Fund.” The onchain rollout drew attention from crypto proponents in early September without a formal press release, consistent with a “quiet launch” approach.
Competing with BlackRock's BUIDL
Fidelity's move enters a market that already includes BlackRock's USD Institutional Digital Liquidity Fund (BUIDL), launched in collaboration with Securitize and currently holding more than $2.2 billion in assets, according to rwa.xyz stats. FDIT is positioned as a direct competitor to BUIDL, with Fidelity's distribution footprint cited as a differentiator.
Fidelity and other financial giants view tokenized funds as part of a longer-term modernization of settlement and recordkeeping for traditional securities using public blockchain infrastructure. Access to FDIT is currently limited to institutions that complete onboarding, with potential for broader availability over time. The product's materials emphasize Ethereum's liquidity and smart-contract tooling as reasons for deploying FDIT on that network.
Overall, Fidelity's quiet launch further solidifies the convergence of traditional finance and blockchain, offering institutional investors an additional on-chain treasury exposure option.