Fidelli's Ethereum-Backed Treasury Fund Gathers $200 Million in Assets
In a significant move for the digital asset industry, Fidelity has launched its Treasury Digital Fund, composed entirely of U.S. Treasury securities and cash. The fund, which was started in August with Bank of New York Mellon as its custodian, has already attracted more than $200 million in assets without any public announcements.
Fidelity's offering is positioned well against other similar products in the growing tokenized Treasury market, which currently stands at around $7 billion. Investors are attracted to these funds for their regulated, yield-bearing options, serving as alternatives to stablecoins or other cryptocurrencies.
The Fidelity Digital Interest Token (FDIT) represents a share in Fidelity's Treasury Digital Fund (FYOXX). Fidelity charges a 0.20% annual management fee for the tokenized fund. As of now, the fund has only two recorded holders. One controls about $1 million in tokens, and the other manages the rest.
The launch of the FDIT on Ethereum last month follows in the footsteps of other asset managers venturing into the blockchain-based treasury products space. Franklin Templeton and WisdomTree are two such players, offering investors treasury exposure without the need for traditional fund intermediaries.
Expert predictions suggest that tokenized securities could be worth more than $2 trillion by 2030. However, no new information about the predictions for the growth of tokenized securities was provided in this report.
Notably, BlackRock's BUIDL fund has more than $2 billion in assets, but the search results do not provide information on the second major asset manager launching a blockchain-based treasury product like Fidelity. Fidelity has also filed with the U.S. Securities and Exchange Commission (SEC) to add an on-chain share class to its treasury fund.
As the digital asset industry continues to evolve, it's clear that traditional asset managers are increasingly recognising the potential of tokenized securities and are positioning themselves to capitalise on this growing market.
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