Fidelity Joins the Tokenized US Treasury Bills Race, Taking on BlackRocks BUIDL Fund

Fidelity is launching a new tokenized fund focused on U.S. Treasury bills, setting itself up as a direct competitor to BlackRocks BUIDL fund.

SCOOP: FIDELITY TO LAUNCH TOKENIZED FUND INVESTING IN U.S. TREASURY BILLS, COMPETING WITH BLACKROCK'S BUIDL

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.

Fidelitys latest offering us in line with the broader trend of bringing traditional assets onto blockchain platforms.

How Does Fidelity Stack Up Against BlackRocks BUIDL？

Fidelity‘s direct competition with BlackRock’s BUIDL fund is the main headline. BlackRocks BUIDL Fund has a solid market presence, leveraged through a network of prominent players in both traditional finance and the crypto industry.

BUIDLs 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 BlackRocks 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, BlackRocks BUIDL is slated to receive half of the funds under this program..

Today, BlackRock's BUIDL crossed the $1 billion mark, making it the largest tokenized fund tracking onchain Treasuries.

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 BlackRocks BUIDL？

BlackRocks 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: BlackRocks 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 funds auditor, reinforces the operational foundation of BUIDL.