- Fidelity launches tokenized fund: New fund will invest in U.S. Treasury bills using blockchain
- Direct competition with BlackRock: Fidelity aims to rival BlackRock’s established BUIDL fund
- Trend of asset tokenization: Move aligns with growing adoption of blockchain in traditional finance.
Fidelity is launching a new tokenized fund focused on U.S. Treasury bills, setting itself up as a direct competitor to BlackRock’s BUIDL fund .
In simpler terms, Fidelity’s new offering lets investors put their money into the US Treasury bills through their blockchain-based system. By tokenizing the U.S. Treasury bills, Fidelity’s plan is to give investors greater flexibility, transparency, and liquidity, on-chain.
Fidelity’s latest offering is in line with the broader trend of bringing traditional assets onto blockchain platforms.
How Does Fidelity Stack Up Against BlackRock’s BUIDL?
Fidelity’s direct competition with BlackRock’s BUIDL fund is the main headline. BlackRock’s BUIDL Fund has a solid market presence, leveraged through a network of prominent players in both traditional finance and the crypto industry.
BUIDL’s goal has been to bring U.S. Treasury bills and other secured assets onto blockchain, combining the safety of government bonds with the advantages of blockchain technology, such as flexibility and transparency.
Related: COLLE AI Joins BlackRock’s BUIDL Fund, Signaling Growing Interest in AI-Driven NFTs
The recent Spark Tokenization Grand Prix, an initiative aimed at allocating $1 billion in tokenized assets, further intensifies their rivalry. Notably, BlackRock’s BUIDL is slated to receive half of the funds under this program..
Launched in July 2024, this initiative centers around the use of stablecoins within the Spark Liquidity Layer (SLL) to incorporate tokenized assets like BUIDL, USTB, and JTRSY. If governance approves this plan in April 2025, it will also involve investments in Superstate’s USTB and Centrifuge’s JTRSY.
Who Are the Key Players Supporting BlackRock’s BUIDL?
BlackRock’s BUIDL benefits from a robust ecosystem of major partners such as Anchorage Digital Bank NA, BitGo, Coinbase, and Fireblocks. These partners provide essential infrastructure and services that support the tokenization process.
Related: BlackRock’s BUIDL Fund Expands to Five New Blockchains
BlackRock has also made a strategic investment in Securitize, the platform responsible for managing the tokenized shares of BUIDL. This partnership, along with the engagement of PricewaterhouseCoopers LLP as the fund’s auditor, reinforces the operational foundation of BUIDL.
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