Moody’s assigned its highest credit rating to tokenized money market funds from Fidelity and BlackRock, validating their safety as yield-generating on-chain products.
The AAA-mf rating indicates 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 on-chain fund registrations, smart contract-based settlement, and stablecoin subscriptions and redemptions.
It also includes infrastructure support from JPMorgan Chase for fund custody and administration, Apex Group for transfer agency services, and Chainlink, which publishes fund net asset value and distribution data on-chain.
“There is no tokenized finance without tokenized liquidity. Once markets are settled in real time, cash must also be settled in real time,” Emma Pecenicic, head of digital asset distribution at Fidelity International, said in a statement.
BlackRock’s BUIDL, introduced in March 2024, 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 deal in short-term, highly liquid 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 store cash while earning some interest.
Tokenized U.S. government debt products, including Treasury bills, notes, bonds, and money market funds, have rapidly gained traction among both traditional financial institutions and crypto-native companies.
The tokenized on-chain Treasury sector now has total assets under management of more than $15 billion, up from $1 billion in just two years, according to data source rwa.xyz. Growth is driven by demand for on-chain versions of low-risk, return-generating instruments.
