Plume Opens Blockchain Door to Fidelity’s $28 Billion Bond ETF

Plume launched nBND on October 5, creating blockchain-based exposure to Fidelity’s $28 billion Total Bond ETF (FBND). However, the ETF itself remains offchain, with nBND acting as a receipt token for shares held in a Nest vault. Shortly after launch, Defillama recorded only about $48 in onchain assets for nFBND.

Plume’s Nest protocol wraps exposure to FBND shares, issuing investors a receipt token rather than direct ownership. Fidelity has not tokenized FBND, meaning the fund’s $28 billion has not moved onchain. The initial onchain assets were minimal, with Defillama classifying nFBND as a wrapper and receipt token issued by Nest DAO LLC.

Plume aims to expand beyond tokenized Treasury bills, targeting institutional investors interested in longer-duration bonds and active management. Chris Yin, Plume’s CEO and co-founder, emphasized the demand for duration and active management in onchain fixed income. Fidelity’s FBND offers a diversified bond portfolio with a 4.74% 30-day SEC yield and a focus on investment-grade debt.

Despite the $28 billion figure associated with FBND, nBND’s blockchain experiment began with just $48 in onchain assets. Cynthia Lo Bessette, Fidelity’s head of digital asset management, noted the potential for programmable portfolios and collateral utility. The success of this initiative hinges on attracting serious allocators to boost the onchain assets significantly.