With its Digital Interest Token (FDIT), Fidelity moves to challenge BlackRock\u2019s BUIDL fund.<\/p>\n
Fidelity\u2019s<\/a> Sept. 8 launch of its Fidelity Digital Interest Token (FDIT) fund marks a turning point for institutional adoption of on-chain assets, experts say, as it not only challenges BlackRock\u2019s BUIDL but further bridges the gap between traditional finance (TradFi) and blockchain.<\/p>\n FDIT, a tokenized share class of Fidelity\u2019s Treasury money market fund (MMF) on Ethereum<\/a>, has already amassed more than $203.7 million in assets, and currently has two holders since going live, with real-world asset (RWA) platform Ondo Finance being the largest investor, according to RWAxyz.<\/p>\n The move signals a growing acceptance of tokenized funds among major financial institutions, as firms compete to integrate blockchain technology into traditional markets. Currently, the largest tokenized MMF is BlackRock\u2019s BUIDL<\/a>, which is issued by Securitize and has a total asset value of over $2.2 billion. <\/p>\n Trevor Koverko, co-founder at Sapien, said that Fidelity\u2019s entry into tokenized funds signals a \u201ctipping point,\u201d with two of the world\u2019s largest asset managers now having on-chain products. <\/p>\n Fidelity currently has $16.4 trillion in assets under administration (AUA); BlackRock manages around $11.55 trillion, making it the single largest asset manager in the world.<\/p>\n \u201cThis will accelerate mainstream adoption, improve secondary liquidity, and pressure TradFi to modernize,\u201d Koverko said. \u201cThe rails are shifting from SWIFT to smart contracts, and institutions are coming.\u201d SWIFT is currently the primary messaging network by which international financial transactions are initiated.<\/p>\n Ian De Bode, Chief Strategy Officer at Ondo Finance, told The Defiant that on-chain products \u201cunlock what isn\u2019t possible in the legacy system: instant settlement, 24\/7 global access, composability and more.\u201d <\/p>\n