Coming soon RWA tokens also from Fidelity: here’s what to expect

A few days ago, Fidelity Investments submitted a request to the SEC to launch its own RWA token.

In particular, it has requested to launch its Fidelity Treasury Digital Liquidity on the Ethereum blockchain.

After the success of BlackRock’s BUIDL, now another global giant in asset management also wants to enter this market. 

The success of RWA tokens: Fidelity follows BlackRock’s mission

The RWA (Real World Asset) tokens are crypto tokens 100% collateralized with real world assets. 

For example, the token BUIDL di BlackRock is collateralized with a fund, the BlackRock USD Institutional Digital Liquidity Fund, in turn collateralized with traditional liquid assets that pay yields, such as U.S. bonds.

Although there are many possible different RWA tokens, they are generally security tokens, as their purchase constitutes an investment contract, as in the case of BUIDL.

Since they are often security tokens, they are not found on crypto exchanges, which can only allow the exchange of commodities, but must be traded on platforms authorized for the buying and selling of security. 

There is a dedicated website that monitors the performance of RWA tokens, and on the page dedicated to tokens collateralized in US bonds, it reports, for example, data related to those similar to BUIDL.

The overall market capitalization in the last 12 months has increased from less than one billion dollars to more than five, with three on Ethereum and the rest on Stellar, Arbitrum, Solana, Avalanche, and on other chains. 

In particular, it has grown by 1 billion in just the last two weeks, specifically thanks to BUIDL. 

Data on trading volumes is not available because it is not public. 

However, given that two years ago the overall capitalization did not reach 400 million dollars, it is evident that in recent times there has been an exponential growth, at least for now. 

BlackRock and Fidelity

Currently, the single RWA token collateralized in large-cap US bonds is precisely BUIDL by BlackRock, which has risen to nearly two billion dollars out of the total five. 

In light of such success, it is obvious that Fidelity also aims to enter this market. Moreover, it should not have any serious difficulty in doing so. 

Note that BUIDL a year ago had a market capitalization of only 160 million dollars, or less than a tenth of today. In other words, the growth is remarkable, and this is precisely the moment for the takeoff of this type of asset. 

It should be remembered that the real asset in this case is precisely the US government bonds, and that the tokens are nothing more than assets that represent on-chain the shares of the fund collateralized in bonds. 

Fidelity moreover entered the crypto market even before BlackRock, and launched the second largest ETF on Bitcoin in the world, still behind that of BlackRock.

It is not a coincidence that the Fidelity Treasury Digital Liquidity Fund looks very similar to the BlackRock USD Institutional Digital Liquidity Fund. 

These are two major American financial companies that are also competing in the crypto markets, as well as in the traditional markets that they dominate globally. 

The Bitcoin spot ETFs

Regarding Bitcoin ETFs, FBTC by Fidelity has recorded strong inflows in recent weeks, particularly one of 127 million dollars about ten days ago, and another of almost 83 million the day before yesterday. 

However, these figures are very far from the all-time record of 473 million dollars in daily inflows recorded during the FOMO period. 

From this point of view, however, FBTC is far from IBIT of BlackRock, given that in recent weeks it has recorded as many as three daily inflows exceeding 100 million, one of which even exceeded 200. Just consider that the all-time record of IBIT, regarding daily inflows, was a stratospheric 1.119 billion during the FOMO. 

Note that since March 14, Bitcoin ETFs have been recording positive net inflows daily, after several weeks of net outflows. 

FBTC in total since it was launched in January of last year has recorded more than 11 billion dollars in overall net inflows, while IBIT has even reached nearly 40 billion. Moreover, FBTC today capitalizes about 17.6 billion dollars, and IBIT more than 50. 

The sentiment on these crypto derivatives present on traditional exchanges seems to have turned positive again, after a few objectively difficult months.