Fidelity International launches first tokenized USD liquidity fund powered by Chainlink

Fidelity International launched its first tokenized fund on Wednesday, the Fidelity USD Digital Liquidity Fund (FILQ), bringing regulated on-chain yield-bearing liquidity products to its clients.

FILQ offers exposure to high-quality government securities and asset-backed commercial paper while enabling 24/7 access, near-instant settlement and on-chain functionality for institutional investors. 

Fidelity expands into tokenized finance with yield-bearing liquidity vehicle

The fund, issued through Sygnum Bank's tokenization platform, is designed to combine traditional money market stability with blockchain-native liquidity management. FILQ has received an Aaa-mf rating from Moody's, reflecting strong credit quality and liquidity characteristics comparable to those of conventional money market funds.

Chainlink provides the fund's real-time on-chain net asset value (NAV) and distribution data, enabling transparent and verifiable reporting directly on blockchain networks. Approved daily NAV data is supplied by JPMorgan, creating a tamper-resistant pricing system designed to support institutional-grade digital asset workflows.

Emma Pecenicic, Head of Digital Assets Distribution at Fidelity International, stated that the launch reflects the growing importance of tokenized liquidity infrastructure as markets shift toward continuous settlement models.

"There is no tokenized finance without tokenized liquidity. As markets move towards real time, always on settlement, financial infrastructure has to move with the same immediacy," Pecenicic said.

She added that tokenization represents a broader structural transformation in financial markets rather than a short-term technological trend.

FILQ is designed to address the idle cash drag common in digital asset markets. By holding tokenized shares backed by regulated assets, investors can continue earning yield while maintaining immediate liquidity for trading, collateral management, or lending.

Subscriptions and redemptions are available around the clock through Sygnum's platform, with near-instant settlement during market hours. The fund's tokens follow the ERC-20 standard on Ethereum within a permissioned environment that incorporates compliance and governance controls.

Fidelity's move comes as institutional demand for blockchain-based financial products continues to grow, with BlackRock, Franklin Templeton and JPMorgan expanding their tokenized treasury and money market offerings.

JPMorgan filed on Tuesday to launch the OnChain Liquidity-Token Money Market Fund, which will trade under the ticker JLTXX, marking its second tokenized product. The fund will invest primarily in short-term US Treasury securities and overnight repurchase agreements fully collateralized by US Treasury securities or cash.