Moody's-Assessed Tokenized Fund Debuts on Chainlink via Fidelity International
A tokenized liquidity fund has been introduced by the Bermuda-headquartered asset manager utilizing Sygnum and Chainlink's blockchain infrastructure, while JPMorgan delivers daily NAV pricing data.
A tokenized liquidity fund that has been assessed by Moody's Ratings has been introduced by Fidelity International, a worldwide asset management firm overseeing approximately $1 trillion in client assets.
The newly introduced Fidelity USD Digital Liquidity Fund (FILQ) operates on blockchain technology connected to Chainlink and was deployed via Sygnum Bank's digital asset tokenization platform.
As reported by Sygnum, Moody's Ratings awarded the fund a AAA-mf assessment, which represents a classification specifically designated for money market funds indicating robust credit quality alongside strong liquidity characteristics.
This marks an important milestone in the evolution of capital markets, demonstrating how tokenized liquidity products can bring high-quality, yield-bearing liquidity on-chain in a regulated and scalable way.
Fatmire Bekiri, Sygnum's head of tokenization
Cointelegraph approached Fidelity International for comment regarding the news but did not receive a response at the time of publication. Bermuda-based Fidelity International and US-based Fidelity Investments are separate companies that operate in different jurisdictions through their subsidiaries and affiliates.
Chainlink expands role in real-world assets
The introduction of Fidelity International's FILQ contributes to Chainlink's expanding footprint within the tokenized real-world asset (RWA) industry, given the platform's emphasis on bridging blockchain applications with off-chain real-world information that isn't natively available onchain.
Through this partnership arrangement, Chainlink will deliver onchain net asset value (NAV) along with distribution information for the fund, enabling global investors to monitor fund valuations and payout distributions in near real time.
By adopting Chainlink's industry-standard platform to deliver verifiable, real-time NAV and distribution metrics, FILQ utilizes the tamper-proof transparency required to securely bridge traditional finance with the onchain economy.
Fernando Vazquez, president of capital markets at Chainlink Labs
JPMorgan will provide approved daily NAV data for the fund, Chainlink mentioned.
Chainlink previously collaborated with both Sygnum Bank and Fidelity International for onchain NAV data integration in 2024, marking an earlier production use case for tokenized assets tied to the latter's Institutional Liquidity Fund.
Tokenized funds expand across markets
This product release arrives as major asset management firms persist in migrating conventional cash and treasury instruments onto distributed ledger technology networks. Industry players ranging from BlackRock to Franklin Templeton have previously unveiled tokenized money market fund offerings designed to deliver short-duration yield-generating products onchain.
On Tuesday, JPMorgan filed with the US securities regulator to launch a tokenized money market fund on Ethereum, allowing stablecoin issuers to hold reserves backing their stablecoins.
Boston, Massachusetts-based Fidelity Investments also previously issued the Fidelity Digital Interest Token (FDIT), a tokenized money market fund in which Ondo Finance's OUSG fund serves as the primary anchor investor and accounts for the vast majority of its assets.