Fidelity Launches Blockchain-Based Fund Targeting U.S. Treasury Investments 

• Fidelity enters the tokenized asset space with a new U.S. Treasury fund, providing flexible and transparent investment access on a blockchain.
• The fund directly challenges BlackRock’s BUIDL, signaling intensified competition in the growing tokenized financial assets market.
• Both Fidelity and BlackRock are now positioned at the center of blockchain-driven Treasury investment strategies backed by major financial infrastructure.

Fidelity has launched a blockchain-based tokenized fund backed by U.S. Treasury bills. The fund allows investors to access government debt instruments using digital assets. The offering directly challenges BlackRock’s established BUIDL fund, which already holds a strong position in the tokenized asset sector.

The tokenization platform from Fidelity allows investors to access U.S. Treasury securities while gaining better flexibility and transparency and improved market liquidity. The digital format sets up a more efficient investment framework because users can execute transactions on-chain. As a part of financial sector-wide blockchain adoption for conventional asset management, this development emerges.

Fidelity Moves to Rival BlackRock’s Market Position

The new investment fund has gained the status of a leading competitor against the BUIDL fund operated by BlackRock. The current offering from BlackRock functions through a broad arrangement of major financial and crypto infrastructure companies. Secure digital asset operations are managed by four crucial financial partners including Anchorage Digital Bank NA, Coinbase, BitGo, and Fireblocks.

The rivalry between the two firms has become more prominent amid the Spark Tokenization Grand Prix. This initiative was created to allocate $1 billion across tokenized financial products. Within the proposed distribution, BlackRock’s BUIDL fund is expected to receive half the total allocation. The program is tied to the Spark Liquidity Layer, which centers around the use of stablecoins.

New Governance Plans Could Broaden Asset Tokenization

A governance vote scheduled for April 2025 may further widen the landscape for tokenized funds. If approved, it would bring additional products such as Superstate’s USTB and Centrifuge’s JTRSY under the Spark initiative. These investments would operate alongside BUIDL and Fidelity’s latest fund.

BlackRock continues to reinforce its operational structure through investments and collaborations. Its partnership with Securitize supports BUIDL’s share management, while PricewaterhouseCoopers LLP serves as its auditor. These affiliations are seen as critical components in sustaining its competitive edge in the rapidly evolving tokenized finance space.