Plume has launched nBND, a tokenized vault backed primarily by the Fidelity Total Bond ETF (FBND), expanding on-chain investors' access to diversified fixed-income assets through blockchain-based investment infrastructure. The move, detailed in Plume's official announcement, extends the network's tokenized asset offering beyond short-duration Treasury products and into broader bond markets.

Plume Expands On-Chain Access to Broader Bond Markets

FBND is an actively managed exchange-traded fund from Fidelity Investments that invests primarily in investment-grade, high-yield, and emerging market debt. Through nBND, on-chain capital allocators can gain exposure to a more comprehensive bond portfolio in tokenized form.

Plume announced the launch on X on October 5, 2026:

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

https://x.com/plumenetwork/status/2107003244719309273?ref_src=twsrc%5Etfw

Historically, most on-chain fixed-income products have centered on short-duration Treasuries and money-market assets. According to Plume, institutional investors are increasingly seeking longer duration and active investment strategies, and nBND is the company's response — bringing legacy bond exposure to blockchain infrastructure.

The launch also reflects growing collaboration between crypto-native platforms and traditional financial institutions. Plume believes the partnership can merge blockchain technology with traditional investment expertise, allowing tokenized financial products to offer investors greater programmability and expanded portfolio-building capabilities.

Cynthia Lo Bessette, Head of Digital Asset Management at Fidelity Investments, discussed the development with Plume co-founder Teddy Pornprinya. Their conversation focused on how investment solutions are increasingly moving onto blockchain networks.

"Institutional allocators are looking for duration and active management," said Plume CEO and co-founder Chris Yin, who described short-duration Treasuries as starting points rather than the final destination.

Tokenized Treasury Growth Highlights a Larger Fixed-Income Opportunity

Plume also noted that tokenized U.S. Treasuries are expected to see robust growth in 2026. The tokenized Treasury market reportedly grew from $12 billion in April to $15 billion in June — an increase in just two months that underscores rising interest in blockchain-based fixed-income products.

Even so, tokenized Treasuries remain a small slice of the broader global fixed-income market, which is valued at more than $100 trillion. Widespread tokenization could therefore represent a significant opportunity for on-chain investment products, according to the company.

The next step, Plume said, will require access to a wide range of assets held by well-established financial institutions. These assets could help build a more robust on-chain capital market beyond yield, while established investment products may give investors familiar exposure through programmable blockchain infrastructure.

Collaboration was also a key theme for Fidelity as tokenized assets become more integrated with the mainstream financial system. Lo Bessette said broader cooperation can expand investment access, citing potential benefits such as custom portfolios, collateral utility, and access to capital.

The vault is designed to enable more flexible on-chain capital allocation, with tokenized assets able to be used in programmable monetary systems and portfolio strategies. With nBND, Plume aims to link existing bond exposure to on-chain portfolio strategies, while Fidelity's involvement brings another major financial institution into the growing tokenization ecosystem. Plume's stated next step is expanding access to additional assets from established financial institutions, making that availability a key area to watch as tokenized fixed-income products develop.

Source: Live Bitcoin News