Fidelity International Launches First Tokenized USD Liquidity Fund on Blockchain
Fidelity International, one of the world’s largest private asset managers, launched its first tokenized fund on Wednesday, bringing a regulated on-chain dollar liquidity product to institutional investors for the first time. The fund, called the Fidelity USD Digital Liquidity Fund and carrying the ticker FILQ, uses Chainlink (LINK) to deliver real-world asset data to the blockchain.
A Mitrade report published Wednesday cited the launch details. The product represents the firm’s entry into the tokenized real-world asset sector, which has drawn commitments from BlackRock, Franklin Templeton, and other major asset managers since 2023.
What FILQ Is and How It Works
FILQ is a tokenized money market fund, a product category that puts traditional short-duration, high-quality debt instruments on a blockchain so that institutional investors can hold, transfer, and redeem fund units on-chain without going through conventional clearinghouse settlement.
Money market funds hold assets such as U.S. Treasury bills, commercial paper, and short-term government securities.
Tokenizing these funds allows the underlying positions to be represented as blockchain tokens that settle in minutes rather than days.
Chainlink provides the data connectivity layer for FILQ. Chainlink is a decentralized oracle network, which means it carries verified off-chain information onto blockchains so that smart contracts can access real-world data such as asset prices, net asset values, and interest rates.
For a tokenized fund, the oracle network’s role is to deliver the daily net asset value of the underlying portfolio to the blockchain so that token holders can see an accurate reflection of the fund’s worth.
Fidelity International is a distinct entity from Fidelity Investments, the U.S.-based retail brokerage. Fidelity International operates independently and focuses primarily on institutional and intermediary clients across Europe, Asia, and the Middle East.
The two firms share a common heritage but have separate ownership structures.
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Why Tokenized Money Market Funds Are Attracting Major Firms
The tokenized real-world asset market crossed $10 billion in total value by early 2026 according to widely cited industry trackers. The growth has been driven primarily by tokenized U.S.
Treasury products, which allow institutions to earn yield on idle cash while keeping assets in a blockchain-compatible format. That compatibility matters for firms using decentralized finance infrastructure, where on-chain collateral and settlement rails are becoming more common.
BlackRock launched its BUIDL tokenized Treasury fund on the Ethereum network in March 2024, reaching $500 million in assets within weeks of launch. Franklin Templeton had already placed its money market fund on blockchain in 2021.
Fidelity International’s FILQ entry adds another globally recognized name to a product category that is consolidating around a small number of institutional-grade providers.
For Chainlink, the FILQ integration represents a continuation of its strategy to position the oracle network as critical infrastructure for institutional tokenization. Chainlink’s link to FILQ means that every time the fund’s net asset value updates, that data flows through the Chainlink network before reaching the blockchain record.
This makes LINK a functional component of the fund’s daily operations, not merely a promotional partnership.
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Background: The Race to Tokenize Traditional Finance
Tokenization of traditional financial assets has moved from concept to commercial product across a compressed timeline. In 2021, Franklin Templeton filed with U.S. regulators to place fund records on a public blockchain.
By 2023, the European Investment Bank had issued digital bonds on blockchain infrastructure. By early 2025, regulators in several jurisdictions had issued guidance or licensing frameworks for tokenized funds, removing a significant legal obstacle that had slowed institutional adoption in prior years.
Fidelity International had been monitoring this space and conducting internal pilots before the FILQ launch.
The fund’s use of Chainlink rather than a proprietary data bridge suggests the firm opted for battle-tested, widely adopted infrastructure over a bespoke solution. That choice reduces counterparty risk tied to a single data provider and aligns with how other major tokenized fund issuers have approached the oracle question.
The broader tokenization race has significant implications for Ethereum (ETH), which hosts the majority of tokenized real-world assets by value.
If major asset managers continue to build on Ethereum-compatible infrastructure, demand for block space and on-chain settlement capacity on the network may increase as the tokenized asset pool grows.
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What to Watch
The key metric for FILQ in its early weeks is assets under management growth. BlackRock’s BUIDL fund reached $500 million within its first month, setting a benchmark the market will use to evaluate FILQ’s uptake.
Watch also for additional blockchain network deployments. BUIDL expanded from Ethereum to other chains after its initial launch, and Fidelity International may follow a similar path if institutional demand materializes across multiple ecosystems.
Any regulatory response from European or Asian authorities to the FILQ structure will also shape how quickly similar products can follow from other firms in those jurisdictions.
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