Plume has launched nBND, a tokenized vault backed primarily by shares of the Fidelity Total Bond ETF, enabling the integration of actively managed bond investing on its blockchain platform.
Plume announced the product on 5 October, stating that nBND uses the Fidelity Total Bond ETF (FBND) as its primary reserve asset. This ETF invests in investment-grade bonds, high-yield debt instruments, and emerging market securities.
The launch gives Plume users access to a different segment of the bond market than short-term Treasury bonds and money market products, which have dominated the tokenized bond markets. Plume CEO Chris Yin said institutional investors "want duration and active management" alongside the short-term products already available on-chain.
FBND is an actively managed ETF from Fidelity, listed in the US. Plume's statement says the fund's shares make up the primary reserve asset of nBND, meaning the new vault is tied to an existing traditional investment product rather than a newly created bond portfolio.
Fidelity classifies FBND as a fixed-income exchange-traded fund designed for investors seeking income and some protection from stock market volatility. The fund is not limited to US government bonds only. Its managers can allocate capital across government securities, investment-grade corporate bonds, high-yield bonds, and emerging market investments.
According to official Fidelity data, the FBND was created on 6 October 2014, with an expense ratio of 0.36%. As of August, its portfolio held thousands of securities, including US Treasuries, mortgage-backed securities, and corporate bonds.
In the launch materials, nBND is described as a tokenized vault backed by shares of FBND. They do not state that each nBND holder becomes a direct registered shareholder of the underlying Fidelity ETF. Therefore, the structure should not be described as Fidelity placing its entire ETF on-chain.
Plume did not disclose the number of FBND shares deposited into nBND at launch, nor did it provide an initial total value of locked funds in the vault.
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