Moody’s has 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 demonstrates an extremely strong ability to guarantee high liquidity and capital preservation as well as the lowest possible 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 ledgers, 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 the fund’s net asset value and distribution data on-chain.
“There is no token finance without token liquidity. Once markets stabilize in real time, liquidity must also settle 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 an article on X from Securitize, its transfer agent and tokenization platform.
Money market funds trade short-term, highly liquid debt securities with maturities typically less than one year, such as Treasury bills, commercial paper, and certificates of deposit. Investors use money market funds as a safe place to park their cash while earning interest.
Tokenized U.S. government debt products, including Treasuries, bonds, money market funds, have quickly gained traction with traditional financial institutions and crypto-native businesses.
The on-chain tokenized 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, yield-generating instruments.
