Fidelity Launches Tokenized Fund for U.S. Treasury Bills

Fidelity is launching a new tokenized fund focused on U.S. Treasury bills, positioning itself as a direct competitor to BlackRock’s BUIDL fund.

> SCOOP: FIDELITY TO LAUNCH TOKENIZED FUND INVESTING IN U.S. TREASURY BILLS, COMPETING WITH BLACKROCK’S BUIDL
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> — Aggr News (@AggrNews) March 22, 2025

In simpler terms, Fidelity’s new offering allows investors to invest in U.S. Treasury bills through a blockchain-based system. By tokenizing these assets, Fidelity aims to provide enhanced flexibility, transparency, and liquidity on-chain.

Fidelity’s latest product aligns with the ongoing trend of integrating traditional assets onto blockchain platforms.

How Does Fidelity Compare to BlackRock’s BUIDL?

The primary focus is Fidelity’s competition with BlackRock’s BUIDL fund, which has established a strong market presence. BlackRock’s BUIDL Fund is supported by a network of significant players from both traditional finance and the crypto industry.

BUIDL aims to bring U.S. Treasury bills and other secure assets onto the blockchain, combining the reliability of government bonds with the benefits of blockchain technology, including 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 to allocate $1 billion in tokenized assets, sharpens their rivalry. Notably, half of these funds are designated for BlackRock’s BUIDL.

> Today, BlackRock’s BUIDL crossed the $1 billion mark, making it the largest tokenized fund tracking on-chain Treasuries.
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> — Injective 🥷 (@injective) March 13, 2025

Launched in July 2024, this initiative focuses on using stablecoins within the Spark Liquidity Layer (SLL) to incorporate tokenized assets like BUIDL, USTB, and JTRSY. If governance approves in April 2025, it will also involve investments in Superstate’s USTB and Centrifuge’s JTRSY.

Key Players Supporting BlackRock’s BUIDL

BlackRock’s BUIDL benefits from a strong ecosystem of key partners such as Anchorage Digital Bank NA, BitGo, Coinbase, and Fireblocks, which supply essential infrastructure and services that bolster the tokenization process.

Related: BlackRock’s BUIDL Fund Expands to Five New Blockchains

BlackRock has strategically invested in Securitize, the platform managing the tokenized shares of BUIDL. This collaboration, along with PricewaterhouseCoopers LLP as the fund’s auditor, strengthens BUIDL’s operational foundation.

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