Fidelity International launches its first tokenized money market fund, receiving the highest Moody’s rating AAA-mf

Fidelity International’s Fidelity Dollar Digital Liquidity Fund (FILQ) received Moody’s top AAA-mf rating on May 14, making it Fidelity International’s first tokenized fund. FILQ is modeled on Fidelity’s existing low-volatility net asset value (LVNAV) fund, which has assets of nearly $7 billion and is also rated Aaa-mf, uses the same investment strategy, and enables 24/7 access.

FILQ Technical Specifications: Sygnum Desygnate Platform, Chainlink NAV Oracle, Ethereum ERC-20

Based on Sygnum’s official statement from Wednesday and the FILQ fund documents, the confirmed technical architecture is as follows:

Underlying blockchain: Ethereum

Token standard: ERC-20

Tokenization infrastructure: Sygnum’s Desygnate platform, providing on-chain fund registration and smart-contract settlement

NAV data source: Chainlink oracle connected to daily official fund NAV data provided by JPMorgan

KYC/AML execution party: Sygnum is responsible for all investors’ customer identification and anti-money-laundering review

Subscription and redemption mechanism: The operational method confirmed by investors

According to FILQ’s official FAQ document, institutional investors can subscribe to or redeem fund shares 24/7 using stablecoins through a “waterfall liquidity structure.” FILQ invests in “high-grade government securities.” Its design goal is to “combine the usability of tokenized cash with the return characteristics of money market funds.” FILQ’s subscriptions and redemptions are completed after Sygnum executes the KYC/AML review process.

Moody’s Rating Rationale: Strategy Consistency with Existing LVNAV Funds

In its announcement, Moody’s confirmed that the basis for awarding FILQ the AAA-mf rating is: “FILQ follows the same investment strategy as the LVNAV fund headquartered in Ireland with AUM of nearly $7 billion; the fund’s rating is Aaa-mf.” Fidelity International manages more than $1 trillion in client assets worldwide. FILQ launched on May 6, 2026, and Moody’s rating announcement was published on May 14 (Wednesday).

FAQ

What are the core differences between FILQ and Fidelity’s existing LVNAV fund?

FILQ adopts the same investment strategy as Fidelity’s existing LVNAV fund, essentially creating an on-chain version for existing institutional funds. The core difference lies at the infrastructure level: FILQ issues tokens based on the Ethereum ERC-20 standard and supports 24/7 subscriptions and redemptions; traditional LVNAV funds are limited by traditional market trading hours.

How do institutional investors subscribe to or redeem FILQ?

Investors use stablecoins to subscribe to or redeem through a “waterfall liquidity structure,” and can operate at any time for 24 hours a day. All subscriptions and redemptions must pass the KYC and AML review process executed by Sygnum.

What does the Moody’s AAA-mf rating mean, and what is the basis for the assessment?

AAA-mf is Moody’s highest credit rating for money market funds, reflecting that the fund meets the highest evaluated standards in principal protection ability, liquidity management, and credit risk control. The basis for FILQ receiving this rating is that its investment strategy is completely identical to Fidelity’s existing LVNAV fund with the same rating (Aaa-mf).