Moody’s has assigned Aaa-mf ratings to tokenized money market funds issued by Fidelity International and BlackRock, giving credit validation to onchain yield-bearing products. The rating indicates an extremely strong ability to maintain high liquidity and preserve capital, alongside the lowest level of risk.
Moody’s distinguishes between an assessment and a rating. An assessment reflects a broader analytical view, while a rating is the formal published credit grade. For tokenized money market funds, the Aaa-mf designation signals that the product structure, liquidity profile, and underlying assets meet a very high standard.
Fidelity’s FILQ uses Sygnum infrastructure for onchain fund operations
Fidelity International’s FILQ launched on May 6. The fund runs on Desygnate, a tokenization platform from Swiss digital asset bank Sygnum, which supports onchain fund records, smart contract-based settlement, and subscriptions and redemptions using stablecoins.
The product also relies on infrastructure from several established firms. JPMorgan Chase supports custody and fund administration, Apex Group provides transfer agency services, and Chainlink publishes the fund’s net asset value and distribution data onchain. Emma Pecenicic, head of digital assets distribution at Fidelity International, said in a statement that tokenized finance requires tokenized liquidity, adding that if markets settle in real time, money must settle in real time as well.
BlackRock’s BUIDL received the rating more than two years after launch
BlackRock’s BUIDL, introduced in March 2024, is one of the world’s largest tokenized Treasury funds. According to a post on X by Securitize, its transfer agent and tokenization platform, the fund received its Aaa-mf assignment from Moody’s yesterday, more than two years after its debut.
Money market funds invest in highly liquid, short-term debt securities, usually with maturities of less than one year, including Treasury bills, commercial paper, and certificates of deposit. Investors often use them as a defensive cash allocation while still earning some yield.
Tokenized US government debt has grown from $1 billion to over $15 billion
Tokenized US government debt products, including Treasury bills, notes, bonds, and money market funds, have been expanding quickly across both traditional financial institutions and crypto-native firms. Data from rwa.xyz shows the onchain tokenized Treasury sector now holds more than $15 billion in assets under management, up from $1 billion just two years ago.
The demand is centered on onchain versions of low-risk, yield-generating instruments. Moody’s top-tier ratings for the Fidelity International and BlackRock funds add another formal signal that tokenized real-world asset products are gaining institutional acceptance.