Fidelity and BlackRock both scored the top possible rating from Moody's for their tokenized money market funds. The agencies awarded the funds a AAA-mf rating — the highest grade available for money market funds under Moody's scale.
A first for digital fund structures
The rating applies to tokenized versions of traditional money market funds. These digital shares run on blockchain rails, letting investors buy, sell, and trade fund units faster than standard settlement cycles allow. Until now, no tokenized fund of this kind had received a AAA-mf mark.
Moody's rating signals the funds meet strict criteria for credit quality, liquidity, and stability. Money market funds with a AAA-mf rating are considered extremely low risk, typically investing in short-term government debt or high-grade commercial paper.
What the rating covers
For Fidelity, the rating applies to its Fidelity Treasury Digital Fund. BlackRock's tokenized fund, the BlackRock USD Institutional Digital Liquidity Fund, also earned the AAA-mf label. Both funds give institutional investors blockchain-based access to short-term Treasury bills and similar instruments.
The rating does not cover the blockchain technology itself. Instead, Moody's evaluated the fund's underlying assets, management practices, and operational controls. The tokenization layer was reviewed as part of the operational framework but the rating remains focused on the fund's financial strength.
Signs of growing institutional comfort
Fidelity and BlackRock are among the largest asset managers globally. Their push into tokenized money market funds reflects a broader trend of traditional finance adopting blockchain settlement. The AAA-mf rating removes a key hurdle for risk-averse investors: they now have a familiar credit benchmark for a novel product.
Other firms are watching closely. If tokenized money market funds gain traction, more issuers may seek similar ratings. That could accelerate the shift of short-term cash management onto blockchain networks.
