Plume has launched nBND, a tokenized vault primarily backed by the Fidelity Total Bond ETF (FBND), expanding onchain access to fixed income beyond short-duration Treasury products.

FBND is an actively managed ETF that invests primarily in investment-grade, high-yield, and emerging markets debt. By using the fund as its main reserve asset, nBND moves tokenized fixed income past short-duration Treasuries and money-market equivalents, a category that has so far dominated onchain yield products.

The product targets capital allocators seeking longer duration and actively managed strategies onchain, and it brings traditional fixed-income exposure into Plume's infrastructure for institutional assets.

Why Plume Is Expanding Tokenized Fixed Income

Plume said nBND responds to demand from capital allocators looking for longer duration and actively managed products. The vault gives allocators onchain exposure to a bond strategy managed by a major financial institution.

Chris Yin, Plume's CEO and co-founder, said short-duration Treasuries were an initial step for onchain fixed income, adding that institutional allocators now want duration and active management.

The distinction matters because bond portfolios can carry very different maturity profiles and credit exposures. Short-duration products generally hold assets with limited interest-rate sensitivity. nBND instead uses FBND as its primary reserve asset, bringing broader fixed-income exposure into Plume's onchain environment and connecting traditional portfolio management with blockchain-based infrastructure.

Plume describes itself as an Open Finance platform for institutional assets. Its EVM-compatible chain provides infrastructure for tokenized financial products and related applications.

The launch also reflects a broader shift in how real-world assets are represented onchain. Rather than focusing solely on Treasury products, issuers are adding diversified financial assets, giving the tokenized fixed-income market a wider range of potential portfolio building blocks and creating a bridge between established asset managers and crypto-native infrastructure. Whether allocators take up diversified bond vaults like nBND alongside the short-duration products that built the category will show how far that shift extends beyond Treasuries.

Introducing nBND, a Plume Vault backed by Fidelity Total Bond ETF (FBND). FBND is an actively managed ETF investing primarily in investment-grade, high yield, and emerging markets debt. Onchain investment solutions started with short-duration Treasuries. Now, capital allocators… pic.twitter.com/vaCeAaOBpQ

— Plume (@plumenetwork) October 5, 2026

nBND Adds Institutional Bond Exposure to a Growing Market

The launch comes as tokenized U.S. Treasuries continue to expand. According to Plume's press release, the market grew from $12 billion in April 2026 to $15 billion in June — a $3 billion increase over two months. Plume noted that the global fixed-income market exceeds $100 trillion in assets, a figure it said highlights the potential scope for broader fixed-income tokenization.

The company is positioning nBND as part of a wider fixed-income market rather than another isolated yield product. That distinction centers on access to established financial assets through programmable blockchain infrastructure.

Fidelity's Cynthia Lo Bessette said tokenized assets and onchain applications are becoming more integrated with mainstream market infrastructure. She said collaboration can expand investment access and enable greater portfolio programmability, and pointed to potential collateral utility and access to capital — functions that could make tokenized assets useful beyond simply holding an investment product. Those functions were framed as potential rather than confirmed live features of nBND, making their implementation one of the developments to track as the vault and similar products mature.

For market participants, the key development is the expansion of tokenized fixed income into actively managed bond exposure. nBND links an established ETF structure with an onchain vault.

Source: Blockonomi