Fidelity International, the Bermuda-based asset manager, has launched a tokenized liquidity fund that brings on-chain access to a traditional money-market vehicle. The fund relies on infrastructure from Chainlink and Sygnum, while JPMorgan provides daily net asset value data to price the shares.
How the fund works
The fund is designed to let eligible investors hold and trade units of a liquidity pool via blockchain tokens. By tokenizing the fund, Fidelity International aims to reduce settlement times and enable 24/7 transfers, a departure from the end-of-day processing typical of conventional funds. The structure keeps the underlying assets — short-term fixed-income instruments — but represents ownership through digital tokens on a distributed ledger.
Why Chainlink and Sygnum
Chainlink provides its decentralized oracle network to feed off-chain data, including the NAV figures from JPMorgan, onto the blockchain. Sygnum, a Swiss-based digital asset bank, handles the custody and tokenization layer, ensuring the tokens are issued and managed in a regulated manner. The combination allows the fund to maintain price integrity while operating on-chain.
JPMorgan's role in pricing
JPMorgan delivers daily NAV calculations for the fund. That data is critical: it determines the price at which tokens are issued and redeemed. The bank's participation links a traditional financial back-office function to a blockchain-based product, bridging the gap between conventional asset servicing and tokenized markets.
The fund is not yet available to retail investors. Fidelity International has not disclosed the initial size of the fund or a launch date for broader access. The move follows similar tokenization efforts by other asset managers, but Fidelity International is one of the first large traditional firms to pair a money-market fund with an oracle provider and a regulated digital bank.
Regulatory oversight of the fund falls under Bermuda's framework for digital asset businesses. Fidelity International, already regulated there, will need to comply with ongoing disclosure and custody rules as the fund operates.
