Key Takeaways
- Fidelity International launches its first tokenized fund, FILQ.
- The fund offers 24/7 access to a Moody's AAA-rated portfolio.
- Chainlink provides the infrastructure, with JPMorgan supplying NAV data.
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Fidelity's new fund offers 24/7 access via Chainlink RWA tech
Global asset manager Fidelity International launched its first tokenized fund, offering clients 24/7 access to a yield-bearing U.S. dollar liquidity portfolio through distributed ledger technology.
The Fidelity USD Digital Liquidity Fund, or FILQ, was announced Wednesday, representing a major step by the $1 trillion asset manager into the digital asset space, according to the firm's statement.
The fund, tokenized on a private Ethereum network, holds a Moody's AAA rating and utilizes Chainlink's oracle network for data feeds, while JPMorgan provides the daily Net Asset Value (NAV) pricing. Sygnum Bank provides the underlying digital asset infrastructure.
This launch is a significant development for the Real-World Asset (RWA) tokenization narrative, creating a regulated bridge for institutional capital to access on-chain financial products and operate outside traditional market hours.
FILQ aims to solve a key problem for digital asset investors: providing a regulated, interest-bearing "risk-off" option that can be accessed around the clock. Unlike traditional money market funds that operate on a T+1 or T+2 settlement cycle, FILQ allows for near-instantaneous transactions, enabling treasurers and institutional investors to manage liquidity more efficiently.
The collaboration brings together several major players in both traditional and decentralized finance. Chainlink's role in providing secure and reliable data feeds is crucial for the fund's operation, ensuring that the token's value accurately reflects the underlying assets' NAV. The involvement of a global banking giant like JPMorgan further legitimizes the structure.
By tokenizing a traditional money market fund, Fidelity is demonstrating a key use case for blockchain technology in capital markets. This move could encourage other large asset managers to explore similar products, potentially bringing trillions of dollars in assets on-chain in the coming years.
This article is for informational purposes only and does not constitute investment advice.
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