- Fidelity’s new tokenized fund enables investors to access U.S. Treasury bills through a blockchain-based system, enhancing liquidity and transparency.
- The competition between Fidelity and BlackRock escalates, with BlackRock’s BUIDL fund benefiting from strong industry partnerships and market presence.
- The Spark Tokenization Grand Prix further fuels the rivalry, allocating $1 billion in tokenized assets, with BlackRock’s BUIDL receiving a significant share.
Fidelity has launched a tokenized fund designed for investment in U.S. Treasury bills. This move positions the firm as a direct competitor to BlackRock’s BUIDL fund, which has already gained traction in the market.
Fidelity’s newest product provides investors with a possibility to invest in Treasury bills using blockchain technology. This should result in more transparency, flexibility, and liquidity in the tokenization process as is the case with any integration of traditional financial asset with blockchain technology.
Direct Competition with BlackRock’s BUIDL Fund
The launch of this fund places Fidelity in direct competition with BlackRock’s BUIDL, which has established itself in the tokenized asset space. BlackRock has built a strong presence by partnering with major financial and crypto firms, leveraging its network to advance blockchain-based investments.
The BUIDL fund from BlackRock uses its structure to migrate Treasury bills and secured assets onto blockchain platforms. The implementation of this model aims to merge government bonds reliability with blockchain technology advantages which consist of improved transaction efficiency alongside greater investor convenience.
Spark Tokenization Grand Prix Intensifies the RivalryThe competition between Fidelity and BlackRock has gained further momentum through the Spark Tokenization Grand Prix. This initiative aims to allocate $1 billion in tokenized assets, with BlackRock’s BUIDL fund set to receive half of the allocated funds.
Stablecoin Integration in Asset Tokenization
Launched in July 2024, the Spark Tokenization Grand Prix integrates stablecoins within the Spark Liquidity Layer (SLL). The program supports tokenized assets, including BUIDL, USTB, and JTRSY. Pending governance approval in April 2025, additional investments may also be directed toward Superstate’s USTB and Centrifuge’s JTRSY.
The BlackRock tokenized fund relies on the support of Anchorage Digital Bank NA and other providers such as BitGo including Coinbase and Fireblocks to function. The provided companies supply operational infrastructure and services that enable the fund to function efficiently.
BlackRock has invested in Securitize which operates the platform that manages tokenized shares issued by BUIDL. The fund’s operational stability and regulatory compliance are strengthened through PricewaterhouseCoopers LLP’s auditing role.
