Fidelity Digital Interest Token (FDIT) is a regulated, permissioned digital token on the Ethereum blockchain that represents a share in a Fidelity-managed money market fund. ^{[1] [2]} The token is designed to provide institutional and accredited investors with a stable, yield-bearing, on-chain asset backed primarily by U.S. Treasury securities. ^{[3] [4]} As a prominent example of a Real-World Asset (RWA) tokenized by a major traditional finance (TradFi) institution, FDIT aims to bridge the gap between conventional financial instruments and the digital asset ecosystem. ^[5]​

Overview

Fidelity Digital Interest Token (FDIT) was introduced by Fidelity Digital Asset Management, LLC, a subsidiary of the global asset manager Fidelity Investments. ^{[3] [6]} The token functions as a digital representation of a share in the Fidelity® Treasury Digital Fund (FYOXX), a U.S. Securities and Exchange Commission (SEC) regulated mutual fund. ^[1] The core objective of the fund is to provide a high level of current income while preserving capital and maintaining liquidity. To achieve this, the fund invests at least 99.5% of its total assets in U.S. Treasury securities, repurchase agreements collateralized by U.S. government securities, and cash. ^{[4] [7]}​

Each FDIT token is designed to maintain a stable Net Asset Value (NAV) of $1.00 and provides holders with on-chain exposure to the yield generated by the underlying Treasury assets. ^[1] The token operates on the Ethereum blockchain as a permissioned ERC-20 token, meaning only whitelisted investors who have completed Know Your Customer (KYC) and Anti-Money Laundering (AML) checks are eligible to hold and transact it. ^{[2] [7]} This structure combines the transparency and efficiency of public blockchain technology with the regulatory compliance and investor protections of traditional financial products. ^[5]​

The introduction of FDIT was considered a significant event in the institutional adoption of digital assets, placing Fidelity in direct competition with other major asset managers like BlackRock and Franklin Templeton, who offer similar tokenized treasury products. ^{[5] [7]} According to Manuel Nordeste, Vice President of Digital Assets at Fidelity, "Making our funds available on public blockchains through tokenization is a foundational element of our digital assets strategy." ^[4]​

History and Launch

The groundwork for FDIT was laid when Fidelity filed with the U.S. SEC for approval to add a blockchain-based share class to its digital Treasury fund. ^[7] The underlying mutual fund, the Fidelity® Treasury Digital Fund (FYOXX), was established and commenced operations on August 4, 2025. ^{[1] [7]}​

Fidelity officially launched the Fidelity Digital Interest Token (FDIT) on the Ethereum blockchain on or around September 8-9, 2025. ^{[5] [2]} The launch was marked by a significant strategic partnership with Ondo Finance, a Real-World Asset (RWA) platform. On the day of the launch, Ondo Finance became the fund's anchor investor by allocating $202 million of its own assets to purchase FDIT, representing over 99% of the fund's initial assets under management (AUM). ^{[3] [4]} This provided FDIT with immediate, substantial liquidity and a clear use case within the decentralized finance (DeFi) ecosystem. ^[6]​

The fund saw strong early adoption, with its AUM growing beyond the initial seed investment. By late November 2025, the total asset value had surpassed 266 million. ^[8] This growth signaled strong institutional demand for regulated, on-chain financial products. As of early 2026, the fund's reported AUM varied across different data aggregators, with figures cited between approximately 310 million. ^{[2] [3] [9]}​

Industry Reception

The launch of FDIT was widely viewed by industry experts as a landmark moment and a "tipping point" for the institutional adoption of on-chain assets. ^[5] Trevor Koverko, co-founder of Sapien, commented that with both Fidelity and BlackRock offering on-chain products, the tokenization of assets was moving into the mainstream. Sid Powell, CEO of Maple Finance, stated that the competition between major global players validated the trajectory of on-chain products and signaled they were "set to define the next phase of capital markets." Similarly, Hedy Wang, CEO of Block Street, noted the event signified that "TradFi [is] finally admitting blockchain is becoming the new settlement layer." ^[5]​

Fund Structure and Mechanism

Underlying Asset and Regulatory Framework

FDIT is a tokenized share class of the Fidelity® Treasury Digital Fund (FYOXX). ^[1] The underlying fund is a mutual fund registered with the U.S. SEC, filing under Form N-1A and complying with the U.S. Securities Act. ^[1] The fund's assets are domiciled in the United States and are structured to be "Bankruptcy Remote," meaning the assets held within the fund are segregated and protected from creditors in the event of the issuer's bankruptcy. The fund's official identifiers include CUSIP 31617H813 and ISIN US31617H8135. The Bank of New York Mellon (BNY Mellon) serves as the custodian for the off-chain cash and U.S. Treasury securities held by the fund. ^{[1] [7]}​

The fund has a stated management fee of 0.25% (25 basis points) annually. However, a fee waiver of 0.05% (5 basis points) was in effect through August 31, 2027, making the effective rate 0.20%. There are no subscription or redemption fees. ^[1]​

Tokenization Model and Yield Distribution

The tokenization model is one of "represented" tokenization, where one FDIT token represents a direct ownership claim on one share of the FYOXX mutual fund. ^[4] The total supply of FDIT is designed to match the number of outstanding shares in the fund. Eligible investors can mint (subscribe) new FDIT tokens or burn (redeem) existing ones daily at the fund's current NAV. ^[1]​

FDIT is a rebasing token. This means that the interest income generated by the fund's underlying assets is distributed to holders not through separate dividend payments, but by automatically increasing the number of FDIT tokens in their wallets each day. ^{[3] [6]} This mechanism allows yield to compound directly in the holder's account while the price per token remains stable at $1.00. The Annual Percentage Yield (APY) fluctuates based on the performance of the underlying U.S. Treasury securities, with rates in early 2026 reported at around 5.09% to 5.15%. ^{[3] [4]}​

Technical Details

• Blockchain: Ethereum ^[5]
• Token Standard: ERC-20 (Permissioned) ^{[1] [2]}
• Smart Contract Address: 0x48ab4e39ac59f4e88974804b04a991b3a402717f ^{[2] [6]}
• Value Peg: $1.00 USD ^[2]

Ecosystem and Partnerships

Fidelity Investments

As the issuer, Fidelity provides the institutional-grade infrastructure, brand reputation, asset management expertise, and regulatory compliance for FDIT. ^[3] Several of its subsidiaries are involved in the fund's operation: ^[1]

• Manager: Fidelity Management & Research Company LLC (FMR)
• Fund Administrator: Fidelity Service Company (FSC)
• Transfer Agent: Fidelity Investments Institutional Operations Company (FIIOC)

Ondo Finance

Ondo Finance was the key strategic partner for FDIT's launch, serving as its anchor investor and largest initial holder. ^[3] By integrating FDIT as a core reserve asset for its own tokenized U.S. Treasury products, OUSG (Ondo Short-Term US Government Treasuries) and OMMF (Ondo Money Market Fund), Ondo provided FDIT with an immediate and substantial use case. ^{[2] [6]}

The partnership is synergistic: Fidelity gained a large, stable source of on-chain demand for its new product, while Ondo gained access to a highly liquid, compliant, and bankruptcy-remote asset managed by a trusted TradFi institution to back its own offerings. ^[3] Nathan Allman, CEO and co-founder of Ondo Finance, stated, "The launch of the Fidelity Digital Treasury Fund represents a major step forward in the institutional adoption of tokenized assets on public blockchains. We are proud to have not only been a part of this launch as a strategic partner, but to have also seeded the Fund and to plan to continue to use the Fund as a primary asset backing our own tokenized U.S. Treasury fund, OUSG." ^[3]

Use Cases and Market Position

FDIT is designed to serve as a stable, on-chain cash equivalent and treasury management tool for institutional investors, DAOs, and crypto-native firms. ^[3] Its primary use cases include serving as a reserve asset for other DeFi products, acting as collateral, and providing a gateway for on-chain entities to access stable yields from traditional low-risk assets like U.S. T-Bills. ^[8]​

The benefits often cited for such on-chain products include instant settlement, 24/7 global access, and composability with other on-chain applications, which are not possible in legacy financial systems. ^[5]​

In the growing market for tokenized U.S. Treasuries, FDIT is a direct competitor to products from other major asset managers, most notably BlackRock's BUIDL fund and Franklin Templeton's BENJI token. ^[5] The entry of Fidelity into this space further cemented the trend of major financial institutions leveraging blockchain technology to modernize financial infrastructure. ^[5]​

Access and Limitations

Access to FDIT is highly restricted due to its status as a regulated security. ^[4] The token is not available to the general retail public. ^[2]​

Investor Eligibility

Only "Institutional Investors," "qualified purchasers," and "accredited investors" who are whitelisted by Fidelity Digital Asset Management after completing KYC/AML procedures are able to hold or transfer FDIT. ^{[1] [4]} This permissioned model is a key compliance feature but also limits the token's accessibility and composability within the broader, permissionless DeFi ecosystem. ^[2] The institutional focus is reflected in the low number of total holders, which was reported to be around 15 in early 2026. ^[3]​

Centralization

While FDIT operates on a public blockchain, its core functions—including issuance, redemption, and the management of the whitelist—are centrally controlled by Fidelity. ^[2] This centralization is necessary for regulatory compliance and investor protection but introduces dependencies on a single entity, which contrasts with the decentralized ethos of many crypto-native assets. ^[8]​