With Digital Interest Token (FDIT), Fidelity moves to challenge BlackRock’s Buidl fund.
Fidelity’s September 8 launch of the Fidelity Digital Interest Token (FDIT) fund represents a turning point in the institutional adoption of on-chain assets.
According to rwaxyz, it has already accumulated over $203.7 million in assets on Ethereum, a tokenized share class (MMF) of Fidelity’s Ministry of Treasury Money Market Fund (MMF), and two holders are now acquiring two owners as the real-world assets (RWA) platform is the largest investor.
The move shows that tokenized funds are increasingly accepted among major financial institutions as companies compete to integrate blockchain technology into traditional markets. Currently, the largest tokenized MMF is BlackRock’s Buidl, issued by Securitize, with a total asset value of over $2.2 billion.
Sapien co-founder Trevor Koverko said Fidelity’s entry into tokenized funds marks a “twitter point” and that there are two of the world’s largest asset managers who currently have on-chain products.
Fidelity currently has $16.4 trillion in managed assets (AUA). BlackRock manages approximately $11.55 trillion and is the world’s largest asset manager.
“This puts pressure on us to accelerate mainstream adoption, improve secondary liquidity and modernize pressure trading,” Koverko said. “Rails are moving from quick to smart contracts, and institutions are coming.” Swift is currently the leading messaging network where international financial transactions are being launched.
Ian De Bode, Chief Strategy Officer at Ondo Finance, told Defiant that on-chain products “unlock the impossible with legacy systems: instant payments, global access, 24/7, complexity, and more.”
Meanwhile, Sid Powell, CEO of Asset Manager Maple Finance, reflects Korverko’s sentiment, and Fidelity’s move to Tokenized Funds shows that tokenization is rapidly becoming a core part of financial infrastructure.
“The fact that major global players compete here shows that on-chain products are set to define the next stage in the capital market,” he added that the competition is driving reliability, liquidity and adoption.
“As an asset manager on the chain, Maple sees firsthand how tokenized funds can reach their full potential only when combined with lending and yield infrastructure,” he explained. “The biggest companies entering this space simply verify the trajectory and make sure that both traditional native managers and encryption managers are working to build the same future.”
The launch by Fidelity occurs as Nasdaq, the world’s second largest stock exchange filed with the US Securities and Exchange Commission (SEC) on September 8th and filed with the US Securities and Exchange Commission (SEC) to promote the transaction of tokenized stocks.
The move is called “historic,” and with regulatory approval pending, it could allow tokenized securities to trade on major U.S. stock exchanges.
“It’s not about retail hype, it’s about institutions that signal comfort on blockchain rails,” Headywan, CEO and co-founder of Block Street, told Defiant. “The knock-on effect is that large players start to get deeper liquidity as they bring both volume and trust.”
Wang explained that more broadly of tokenized assets, these moves have driven adoption into actual market infrastructures past early experiments. “For me, that’s acknowledging that blockchain is finally becoming a new payments layer,” she said.