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

BlackRock's BUIDL Fund has a solid market presence, leveraged through a network of prominent players in both traditional finance and the crypto industry.

Fidelity is venturing into tokenized funds with an offering focused on U.S. Treasury bills, setting itself up as a direct competitor to BlackRock's BUIDL fund.

In simpler terms, Fidelity's new offering lets investors put their money into the U.S. Treasury bills through its blockchain-based system. By tokenizing the U.S. Treasury bills, Fidelity's plan is to give investors greater flexibility, transparency, and liquidity, on-chain.

This aligns with the broader trend of bringing traditional assets onto blockchain platforms.

Fidelity's Latest Offering: A Tokenized U.S. Treasury Bill Fund

This move also sets up an interesting dynamic with BlackRock's BUIDL fund, which has been a major player in the space with its focus on tokenizing U.S. Treasury bills and other secured assets. BUIDL's aim is to combine the safety of government bonds with the advantages of blockchain technology, such as flexibility and transparency.

The recent Spark Tokenization Grand Prix, an initiative to allocate $1 billion in tokenized assets, is another point of contention as BUIDL is set to receive half of the funds.

Launched in July, 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.

Key Players Supporting BlackRock's BUIDL

Major partners like Anchorage Digital Bank NA, BitGo, Coinbase, and Fireblocks support BUIDL, providing essential infrastructure and services for the tokenization process.

BlackRock has also made a strategic investment in Securitize, the platform managing the tokenized shares of BUIDL. This partnership, along with the engagement of PricewaterhouseCoopers LLP as the fund's auditor, further underscores the operational foundation of BUIDL.