Fidelity enters tokenized asset market with blockchain treasury fund
Fidelity expands digital finance
Fidelity Investments, a major U.S. financial services holding company, has officially launched a new blockchain-based tokenized fund backed by U.S. Treasury bonds.
This innovative fund offers investors access to government debt instruments in digital format, directly competing with BlackRock’s well-established BUIDL fund in the rapidly growing tokenized finance market, according to CryptoNewsLand.
The new fund enables investors to access U.S. Treasury securities via blockchain infrastructure, providing enhanced transparency, liquidity, and transaction efficiency. The ability to conduct on-chain transactions simplifies the trading process and improves market responsiveness, reflecting the broader industry trend of integrating blockchain technology into traditional asset management.
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Fidelity Challenges BlackRock’s Dominance
Fidelity’s move is seen as a strategic response to BlackRock’s leadership in the tokenized asset space. BlackRock’s BUIDL fund is supported by several leading financial and crypto custodians, including Anchorage Digital Bank, Coinbase, BitGo, and Fireblocks. With this infrastructure, BlackRock has secured a strong position in the tokenization segment, but Fidelity’s entry could significantly reshape market dynamics.
The competition has intensified further following the Spark Tokenization Grand Prix—a program aimed at distributing $1 billion across blockchain-based financial products. While half of these funds are expected to be allocated to the BUIDL fund, Fidelity’s new Treasury-backed fund is now seen as a serious alternative for investors.
Tokenization market poised for expansion
In April 2025, a governance vote will be held on expanding the Spark program, potentially opening the door for new tokenized products such as Superstate’s USTB and Centrifuge’s JTRSY. This could significantly alter the competitive landscape and increase market participation.
While BlackRock continues to strengthen its position through partnerships with Securitize and PwC auditing, Fidelity’s entry marks a significant milestone in the development of tokenized assets. The accelerating adoption of blockchain in traditional finance underscores the immense growth potential of this sector.
It is worth noting that in late 2024, financial giants Fidelity International and Citibank jointly unveiled a concept designed to demonstrate the potential of blockchain-based money market funds and digital FX swaps.
