Moody’s rates Fidelity’s Ethereum-based US dollar liquid fund at the highest Aaa-mf rating.
Key receivers
Moody's assigned an Aaa-mf rating to Fidelity International's USD Digital Liquidity Fund on May 13, 2026.Managed by FIL Investments International, the fund targets institutional investors with MMF AUM of $34.5B.An Ethereum-based token-created fund plans to expand into ZKsync, subject to liquidity with 24/7 redemptions.
The Fidelity Tokenized Money Market Fund receives a high Moody's rating
The fund is structured as a separate portfolio company domiciled in the Cayman Islands. FIL Investments International, a subsidiary of FIL Limited, serves as the investment manager.
Moody's said the Aaa-mf rating reflects the fund's view that it has the strength to meet capital preservation and capital protection requirements. Liquidity Objectives. The fund follows the same investment strategy as Aaa-mf rated Fidelity Institutional Liquidity Fund plc, Irish domiciled low- Flexibility Net asset value fund.
The fund will issue token units that are initially registered on the Ethereum public. blockchainWith plans to migrate to Zksync next. Legal ownership of the Shares is maintained in an off-chain register with Apex Fund Services (Malta) Limited, the transfer agent.
The fund's weighted average maturity remains below 60 days. At least 10% of assets should mature daily and 30% weekly. Overnight deposits represent a high proportion of assets, keeping market exposure low.
Institutional investors can subscribe and redeem onchain as they choose. A stable coin Or off-chain in US dollars via standard bank wire. Moody's says this dual-track structure improves resilience in the event of a disaster blockchain Termination.
The fund is designed to deliver in the near future. Liquidity With 24/7 redemptions, available. Liquidity. Redemption requests submitted outside market hours that cannot be fulfilled will be queued and processed after market hours resume. Redeeming investors can expect payments when they are due. Liquidity Offered outside of market hours.
Moody's uses the queue method or the Liquidity Payments made outside market hours do not reduce the fund's valuation, as both are disclosed in the prospectus. Any liquidation payment or liquidation restriction applied during market hours will lower the valuation.
The smart contracts that govern the currency are permissioned, meaning that only approved participants can interact with the tokens. Moody's says this structure limits the operational, governance and compliance risks associated with blockchain activity.
Tokenization does not change the fund's underlying assets or regulatory framework. The legal ownership structure operates independently of the blockchain layer, so investors' rights are not dependent on the functionality of the distributed ledger.
FIL Limited maintains a Baa1 Stable credit rating from Moody's. As of December 2025, FIL Investments International had $34.5 billion in money market fund assets under management.
Moody's expects that as the fund grows and the investor base expands, the concentration risk of minority shareholders will decrease as the fund grows.
The Aaa-mf designation is a money market fund rating, separate from a credit rating. Moody's defines the designation as an opinion of investment quality for funds primarily used for short-term fixed income obligations.
