Moody’s has assigned AAA-mf, its top rating for money market funds, to tokenized fund products tied to Fidelity and BlackRock. The decision gives a strong credit signal to the tokenized Treasury segment, where asset managers are trying to combine the safety profile of short-term government-linked instruments with blockchain-based settlement and distribution.
Fidelity’s FILQ pushes transfer, settlement and subscriptions on-chain
Fidelity launched its FILQ fund on May 6, using infrastructure from Desygnate, a tokenization platform owned by Swiss digital asset bank Sygnum. The fund keeps its register on-chain, uses smart contracts for automated settlement, and allows investors to subscribe and redeem with stablecoins. The pitch is simple: if trading can settle in real time, cash movement should not lag behind.
Its operating stack brings in several established names. JPMorgan Chase handles custody and fund administration, Apex Group serves as transfer agent, and Chainlink publishes the fund’s net asset value and distribution data on-chain. That setup moves more than issuance onto blockchain rails; it also extends tokenization into recordkeeping, fund operations and data delivery.
Emma Pecenicic, head of digital assets distribution at Fidelity International, said in a statement that tokenized finance cannot be considered genuine tokenization without tokenized liquidity, adding that once markets can deliver instant settlement, fund flows should match that speed.
BlackRock’s BUIDL remains the largest tokenized Treasury fund
BlackRock’s BUIDL, launched in March 2024, is currently the world’s largest tokenized U.S. Treasury fund. According to data shared on X by transfer agent and tokenization platform Securitize, the fund also received Moody’s top AAA rating. That places one of the biggest names in traditional asset management firmly inside the fast-growing market for blockchain-based cash management products.
Money market funds typically hold short-dated, highly liquid instruments maturing within a year, such as Treasury bills, commercial paper and certificates of deposit. In traditional finance, they are widely used as a parking place for idle cash. On-chain versions are now attracting demand from both conventional financial institutions and crypto-native firms looking for low-risk yield.
Tokenized Treasury assets climb past $15 billion
Data from rwa.xyz shows that tokenized U.S. Treasury products, including Treasury bills, notes, bonds and money market funds, have grown from $1 billion to more than $15 billion in assets under management over the past two years. The expansion reflects demand for assets that combine conservative risk characteristics with blockchain transferability and on-chain access.
Moody’s ratings add a familiar layer of trust to a market that has been shaped by asset managers, transfer agents, oracle networks and digital asset infrastructure providers. The race in tokenized funds is no longer limited to launching a blockchain wrapper around a traditional product; it is increasingly about custody, settlement speed, operational design and transparent on-chain data.