Fidelity International has launched the Fidelity USD Digital Liquidity Fund, known as FILQ, as its first liquidity token fund.
Summary
- FILQ provides institutions with 24/7 token money backed by regulated, highly rated government securities.
- Chainlink will publish NAV data on the chain, while JPMorgan provides FILQ authorized daily price data.
- Fidelity’s launch follows JPMorgan, BlackRock and Franklin Templeton in the fast-growing institutional token fund race.
The product gives eligible institutions access to a dollar fund designed for digital asset markets that operate outside of normal trading hours.
Sygnum describes FILQ as a fund rated Aaa-mf by Moody’s that provides exposure to returns from regulated, high-rated government securities. The bank says the product is designed for onchain workflows while keeping the wallet framework close to traditional cash management.
Sygnum and Chainlink power the fund
FILQ is available through the Sygnum platform, where institutional clients can register, hold and use tokens after standard KYC and AML checks. Sygnum says the minimum initial investment is $100,000, and FILQ tokens are issued as an ERC-20 asset on Ethereum.
The fund uses Chainlink to publish NAV and distribute data to the chain, while JPMorgan provides NAV data that is verified daily. Sygnum says the setup provides investors with daily visibility into the fund’s value and supports close payments during market hours.
In addition, this wallet is not sold as a stablecoin. Sygnum says stablecoins are primarily designed for price stability and liquidity, while FILQ adds exposure to maturing government securities while remaining usable in onchain workflows.
The product also supports the accumulation and distribution of token classes. According to Sygnum, the yield increases daily, while the distributed tokens pay monthly dividends under a continuous NAV structure of one token to one US dollar. That structure could appeal to desks that need cash-like access without leaving blockchain-based systems.
The coin purse race is growing beyond Wall Street
The launch comes as major financial firms move more money market and treasury products onto the blockchain rails. Previous reports noted that JPMorgan has incorporated JLTXX, an Ethereum-based token money market fund aimed at stablecoin producers who need assets held by the Treasury.
In addition, BlackRock has invested in a second fund of Securitize-powered tokens after BUIDL grew to about 2.3 billion dollars, as reported by crypto.news. Franklin Templeton and Kraken Payward parent are also working to bring BENJI to Kraken for collateral and cash management.
The move by Fidelity International adds another major manager to the onchain liquidity management market. For institutions, the main use case is simple: keep cash generated, track the value of the wallet on the chain and move between treasury, securities and trading workflows with few delays.
Fidelity International did not publicly respond to all media requests at the time of the launch. However, Sygnum’s product page describes FILQ as “the capital component of the retail capital markets,” while Chainlink’s previous work with Sygnum and Fidelity focused on delivering fund NAV data onchain. Previous collaborations involved Fidelity International’s $6.9 billion equity fund and Matter Labs’ reserve fund. That work laid the foundation.
