Moody’s gave Aaa-mf assessments of tokenized money market funds issued by Fidelity and BlackRock, validating their safety as income-generating on-chain products.
The Aaa-mf assessment demonstrates its strong ability to ensure high liquidity and capital preservation as well as minimal risk levels. An assessment usually implies a broader analytical view, while an actual rating is a formally published credit rating.
Fidelity’s FILQ fund debuted on May 6. The product is powered by Swiss digital asset bank Sygnum’s Desygnate tokenization platform, which supports on-chain fund registration, smart contract-based settlement, and stablecoin subscription and redemption.
It also includes infrastructure support provided by JPMorgan for custody and fund administration, transfer agent services provided by Apex Group, and infrastructure support provided by Chainlink, which publishes the fund’s NAV and allocation data on-chain.
Emma Pecenicic, head of digital asset distribution at Fidelity International, said in a statement: “Without tokenized liquidity, there is no tokenized finance. Once markets settle in real time, cash must also settle in real time.”
BlackRock’s BUIDL, launched in March 2024, is one of the largest tokenized Treasury funds in the world. The fund received an Aaa-mf allocation yesterday, more than two years after its debut, according to a post on X by its transfer agent and tokenization platform Securitize.
Money market funds trade highly liquid, short-term debt securities such as Treasury bills, commercial paper, and certificates of deposit, which typically have maturities of less than one year. Investors use money market funds as a safe place to store cash while still earning some interest.
Tokenized U.S. government debt products, including Treasury bills, notes, bonds and money market funds, have quickly gained traction among traditional financial institutions and cryptocurrency-native companies.
According to data source rwa.xyz, total assets under management of on-chain tokenized treasuries currently exceed $15 billion, growing from $1 billion to $15 billion in just two years. This growth is driven by demand for on-chain versions of low-risk, high-yield instruments.
Correct (May 14, 12:37 UTC): Corrected title and text to clarify that Moody’s assigned an Aaa-mf assessment, not a credit rating.