Fidelity International continues to expand its push into tokenized finance. The company has launched its first tokenized fund, the Fidelity USD Digital Liquidity Fund, in collaboration with Chainlink and Sygnum. Known as FILQ, the product gives institutional investors blockchain-based access to yield from high-quality securities such as government bonds.
The fund is designed as a cash management tool suited to digital asset markets that operate 24/7. With FILQ, Fidelity International aims to offer institutional investors a structure that provides both yield and more flexible liquidity for onchain transactions. The product follows the same investment strategy as the company’s existing Irish-domiciled low-volatility net asset value fund. That fund has around $7 billion in assets under management.
Moody’s assigns top rating
After its launch, FILQ received an Aaa-mf rating from Moody’s Ratings. This rating signals the highest level of credit quality, strong liquidity, and capital preservation capacity for money market funds. Moody’s also gave a top-tier assessment to BlackRock’s tokenized money market fund BUIDL during the same period. The development shows that tokenized government debt and money market funds are becoming a more serious category for traditional financial institutions.
Money market funds generally invest in short-term, highly liquid debt instruments. Treasury bills, short-term government bonds, certificates of deposit, and similar instruments form the basis of these products. Investors often use these funds to park cash, earn low-risk yield, and preserve liquidity.
FILQ’s main difference is that it brings this traditional structure into a tokenized model running on Ethereum. The fund’s tokens use the ERC-20 standard. Institutional investors can subscribe to the fund or redeem their holdings through stablecoin settlement. This structure is especially important for instant settlement, onchain accounting, and faster fund movement in digital asset markets.
Chainlink to bring NAV data onchain
Three key institutions stand out in FILQ’s infrastructure. Fidelity International acts as the fund’s asset manager and issuer. Sygnum provides onchain fund registration, smart contract-based settlement, and institutional client access through its Desygnate tokenization platform. Chainlink brings the fund’s net asset value and distribution data onchain.
JPMorgan provides the approved daily NAV data for the fund. Chainlink publishes this data on the blockchain, allowing investors to track the fund’s pricing in a more transparent way. As a result, traditional fund management, regulated data providers, and onchain financial infrastructure come together within the same product.
Sygnum also handles KYC and AML processes for institutional investors. This allows investors to subscribe to fund tokens, hold them, or enter the redemption process. FILQ is available only to eligible institutional investors and is not open to U.S. persons.
Tokenized bond market grows rapidly
FILQ’s launch is part of the rapid growth seen in tokenized real-world assets. According to RWA data, the total size of tokenized U.S. government debt products has grown from around $1 billion to more than $15 billion in two years. BlackRock’s BUIDL fund has become one of the largest products in this market, while major institutions such as Franklin Templeton and JPMorgan continue to expand their blockchain-based cash management products.
While stablecoins are mainly used for price stability and payments, tokenized liquidity funds such as FILQ provide access to regulated yield-bearing assets. For this reason, the product could serve as a new bridge for cash management, collateral movement, and real-time settlement in digital asset markets. Fidelity’s structure with Chainlink and Sygnum stands out as an important step toward making tokenized finance more practical at the institutional level.
