Moody’s assigned its highest credit rating to tokenized money market funds from Fidelity and BlackRock, validating their safety as yield-bearing onchain products.
The AAA-mf rating signals an extremely strong ability to ensure high liquidity and capital preservation and the lowest level of risk.
Fidelity’s FILQ fund debuted on May 6. The product is powered by Swiss digital asset bank Sygnum’s Desygnate tokenization platform, which enables onchain fund registries, smart contract-based settlement, and stablecoin subscriptions and redemptions.
It also includes infrastructure support from JPMorgan Chase for custody and fund administration, Apex Group for transfer agency services, and Chainlink, which publishes fund net worth and distribution data on the chain.
“There is no tokenized finance without tokenized liquidity. Once markets settle in real-time, cash must also settle in real-time,” Emma Pecenicic, head of digital asset distribution at Fidelity International, said in a statement.
Introduced in March 2024, BlackRock’s BUIDL is one of the largest tokenized treasury funds in the world. The fund received a AAA rating yesterday, more than two years after its debut, according to a post on X by Securitize, its transfer agent and tokenization platform.
Money market funds trade in highly liquid, short-term debt securities with maturities generally less than one year, such as treasury bills, commercial paper and certificates of deposit. Investors use money market funds as a safe place to park cash while still earning some interest.
Tokenized US government debt products, including Treasury bills, notes, bonds and money market funds, have quickly gained traction among both traditional financial institutions and crypto-native businesses.
The onchain tokenized financial sector now has total assets under management of over $15 billion, up from $1 billion in just two years, according to data source rwa.xyz. Growth is driven by demand for onchain versions of low-risk, high-return instruments.
