Plume Unveils nBND Vault with Fidelity Total Bond ETF Backing

Plume Launches New Vault for Tokenized Bond Exposure, Backed by Fidelity ETF

Plume has introduced a new investment vehicle, the nBND vault, which offers institutional investors tokenized access to actively managed bonds, specifically Fidelity’s Total Bond ETF (FBND). This initiative leverages Plume’s Nest protocol, designed for tokenizing real-world assets (RWAs) on its modular Layer-2 blockchain infrastructure.

The nFBND Vault Mechanism

Formally known as the Nest Fidelity Total Bond ETF Vault, or nFBND, the product functions by issuing a receipt token. This token acts akin to a claim check: investors deposit capital, and the token serves as proof of their ownership stake in the vault’s FBND shares. These receipt tokens are traded on Plume’s proprietary blockchain, with the company aiming to provide institutions with a compliant and liquid method for gaining bond exposure.

Nest vaults are engineered to accept stablecoin deposits. This allows users to bypass traditional brokerage accounts, directly depositing digital dollars into the vault to gain programmable exposure to the underlying fund.

Fidelity’s FBND ETF

Fidelity’s Total Bond ETF (FBND), launched on October 6, 2014, is a significant player in the market, managing approximately $28 billion in assets. The ETF carries an expense ratio of 0.36% and currently offers a yield of around 4.88%. It is actively managed, meaning portfolio managers make discretionary decisions about which bonds to include, rather than passively tracking a market index.

Genesis of the Partnership

The development of the FBND product stems from a collaboration between Plume and ether.fi, initiated in June 2026. Their joint venture aimed to create the Etherfi Liquid RWA vault. This initial vault launched with $25 million and has a projected target of $100 million. Its holdings include allocations to BlackRock’s iShares AAA CLO ETF alongside Fidelity’s FBND, providing ether.fi users with regulated access to yield-generating bond markets within the cryptocurrency ecosystem.

Plume’s Infrastructure and Regulatory Compliance

Plume’s public mainnet, Plume Genesis, was launched in June 2025 with a primary focus on asset tokenization. In October 2025, Plume secured SEC transfer-agent registration, a crucial step for supporting tokenized securities. A transfer agent maintains the official record of security ownership, a role that becomes particularly vital when ownership is recorded on a blockchain.

Associated Risks

Investors should be aware of the inherent risks. The introduction of a receipt token creates an additional layer between the investor and the underlying ETF, introducing smart contract and platform risks alongside traditional bond market risks. Fluctuations in interest rates will continue to impact the value of FBND, irrespective of where its tokenized representation resides. The success of the Etherfi Liquid RWA vault, which began with $25 million and targets $100 million, serves as an indicator of market demand for such tokenized assets.