Fidelity International, a global asset manager with more than $1 trillion in client assets, has launched its first tokenized fund, called the Fidelity USD Digital Liquidity Fund (FILQ), powered by Chainlink. The new structure uses on-chain data feeds, enabling yield‑bearing liquidity to move into digital markets that operate 24/7.
How FILQ is Built and Operates
FILQ is a tokenized dollar liquidity fund that mirrors an existing low‑volatility net asset value product managed by Fidelity International. Under the hood, Fidelity acts as asset manager and issuer, Sygnum Bank supplies tokenization infrastructure, Chainlink delivers on-chain NAV and distribution data, and J.P. Morgan provides the approved daily NAV figures.
Sygnum’s Desygnate platform issues the fund as an ERC‑20 token on Ethereum and handles on‑chain registration and smart contract settlement. Sygnum is also responsible for KYC and AML checks for all investors before subscriptions or redemptions are processed.
Additionally, Fidelity structures FILQ to hold high‑grade government securities and similar cash‑like assets, following its existing LVNAV fund strategy. As a result, it aims to pair the usability of tokenized cash with the return features of a regulated money market fund.
Chainlink’s On-Chain NAV and 24/7 Liquidity
Chainlink Labs states that “through on-chain NAV, Chainlink is enabling Fidelity International to bring regulated yield‑bearing liquidity into 24/7 digital markets.” In practice, J.P. Morgan supplies the official daily NAV, and Chainlink’s oracle network then broadcasts that NAV and distribution data directly to the blockchain as the trusted source.
Moreover, Chainlink notes that FILQ offers “24/7 subscriptions across global time zones,” with stablecoin settlement enabling “frictionless on-chain workflows.” Because investors can subscribe or redeem using stablecoins at any time, the fund effectively never closes, unlike traditional vehicles tied to exchange hours.
“By adopting Chainlink’s industry‑standard platform to deliver verifiable, real‑time NAV and distribution metrics, FILQ utilizes the tamper‑proof transparency required to securely bridge traditional finance with the on-chain economy,” said Fernando Vazquez, president of capital markets at Chainlink Labs.
Since Fidelity, Sygnum, and Chainlink had already worked together in 2024 to bring NAV data for a $6.9 billion Institutional Liquidity Fund on-chain, FILQ now turns that earlier collaboration into a fully live tokenized fund.
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