Fidelity International announces the creation of the FILQ – a tokenized liquidity fund that will be hosted via the Sygnum Bank platform using Chainlink technology. Having about $1 trillion under management, Fidelity is consistently working towards integrating traditional offerings onto blockchain platforms.
Sygnum Bank claims that the FILQ fund got a AAA-mf rating from Moody’s Ratings. This rating is generally given to money market funds, and indicates high liquidity and credit quality. With its launch, we can see that Fidelity International is becoming increasingly involved in the sphere of tokenization.
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Fidelity International Expands Blockchain-Based Finance Strategy
This move follows a trend of increased attention from big banks that are venturing into the RWA market. According to Fidelity International, the tokenized approach will enhance transparency and efficiency as well as provide investors with access to liquidity products under regulatory scrutiny.
According to Fatmire Bekiri, who is a Tokenization Lead at Sygnum Bank, the release was a crucial step in the world of capital markets. As per her, tokenized liquidity products can offer regulated yield possibilities using blockchain technology.
In the part of this partnership, Chainlink will provide on-chain net asset value (NAV) and distribution data for the fund, which enables the fund’s investors to keep track of their fund value and distribution details in real-time through blockchain technology.
Source: Chainlink’s X Post
Fernando Vazquez, who is the president of capital markets at Chainlink Labs, revealed that the partnership allows Fidelity International to leverage transparent and verifiable financial information that bridges traditional financial products to blockchain markets.
At the same time, the fund will have its approved NAV data provided by JPMorgan. Chainlink mentioned that the company had already collaborated with Fidelity International and Sygnum Bank in 2024 regarding their previous on-chain NAV integration project related to the Fidelity Institutional Liquidity Fund.
Tokenized Funds Continue Growing Across Global Markets
This is following close behind other asset managers that continue to bring their traditional treasury and money market investments to the blockchain platform. Financial firms like BlackRock and Franklin Templeton have launched tokenized investment funds, which aim to provide yield products on the blockchain.
JPMorgan has apparently filed plans with the U.S. regulatory authorities to launch a tokenized money market fund on the Ethereum blockchain network that might prove helpful for managing reserve assets of stablecoins.
Meanwhile, the American Fidelity Investments, which is not affiliated with Fidelity International, created the Fidelity Digital Interest Token (FDIT). Here, the anchor investor of Ondo Finance’s OUSG fund is responsible for the largest share of the asset portfolio.
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