Fidelity International Launches First Tokenized Fund

Fidelity International, a global asset manager overseeing more than $1 trillion in client assets, has launched its first tokenized fund, the Fidelity USD Digital Liquidity Fund (FILQ), a blockchain-based version of its existing Ireland-domiciled low-volatility net asset value (LVNAV) fund that holds nearly $7 billion in assets.

The fund, which invests in highly rated government securities to provide yield-bearing USD liquidity, received Moody's highest money market fund rating of AAAmf on May 13. It became operational on May 6 and uses the ERC-20 standard on the Ethereum blockchain. Institutional investors can subscribe to or redeem shares around the clock using stablecoins through a waterfall liquidity structure, with enhanced transparency and settlement efficiency compared to traditional funds.

Sygnum Bank provides the tokenization infrastructure via its Desygnate platform, handling issuance, an onchain fund registry, smart contract-enabled settlements, and know-your-customer and anti-money laundering checks. Chainlink supplies verifiable, real-time net asset value (NAV) and distribution data onchain, sourced from JPMorgan's approved daily NAV feeds. This setup builds on prior...