Fidelity International has launched the Fidelity USD Digital Liquidity Fund, known as FILQ, as its first tokenized liquidity fund.
Summary
- FILQ gives institutions 24/7 tokenized liquidity backed by regulated, highly rated government securities and controls.
- Chainlink will publish NAV data onchain, while JPMorgan supplies approved daily pricing data for FILQ.
- Fidelity’s launch follows JPMorgan, BlackRock and Franklin Templeton in the fast-growing institutional tokenized fund race.
The product gives eligible institutions access to a dollar fund designed for digital asset markets that operate outside normal trading hours.
Sygnum describes FILQ as an Aaa-mf assessed fund by Moody’s that gives exposure to yield from regulated, highly rated government securities. The bank says the product is built for onchain workflows while keeping a fund structure closer to traditional cash management.
Sygnum and Chainlink power the fund rails
FILQ is available through Sygnum’s platform, where institutional clients can subscribe, hold and redeem tokens after standard KYC and AML checks. Sygnum says the minimum initial investment is $100,000, and FILQ tokens are issued as ERC-20 assets on Ethereum.
The fund uses Chainlink to publish NAV and distribution data onchain, while JPMorgan supplies approved daily NAV data. Sygnum says the setup gives investors daily visibility into fund value and supports near-instant settlement during market hours.
Moreover, the fund is not being marketed as a stablecoin. Sygnum says stablecoins are mainly built for price stability and settlement, while FILQ adds exposure to yield from government securities while remaining usable in onchain workflows.
The product also supports accumulating and distributing token classes. According to Sygnum, yield accrues daily, while distributing tokens pay monthly dividends under a constant NAV structure of one token to one U.S. dollar. That structure may appeal to desks that need cash-like access without leaving blockchain-based systems.
Tokenized fund race grows across Wall Street
The launch comes as large finance firms move more money market and treasury products onto blockchain rails. Earlier reports noted that JPMorgan filed to launch JLTXX, an Ethereum-based tokenized money market fund aimed at stablecoin issuers needing Treasury-backed reserve assets.
Additionally, BlackRock has filed a second Securitize-powered tokenized fund after BUIDL grew to about $2.3 billion in assets, as crypto.news reported. Franklin Templeton and Kraken parent Payward are also working to bring BENJI into Kraken for collateral and cash management.
Fidelity International’s move adds another large manager to the market for regulated onchain liquidity. For institutions, the core use case is simple: keep cash productive, track fund value onchain and move between treasury, collateral and trading workflows with fewer delays.
Fidelity International has not publicly answered every media request around the launch. Still, Sygnum’s product page describes FILQ as “the cash layer of on-chain capital markets,” while Chainlink’s earlier work with Sygnum and Fidelity focused on bringing fund NAV data onchain. The earlier collaboration involved a $6.9 billion Fidelity International liquidity fund and Matter Labs’ treasury reserves. That work set the base.