Moody's Rates Fidelity's Ethereum-Based USD Liquidity Fund at Highest Aaa-mf Level

"Moody's assigned an Aaa-mf assessment to Fidelity International's USD Digital Liquidity Fund on May 13, 2026. The fund, managed by FIL Investments International, targets institutional investors with $34.5B in MMF AUM. The Ethereum-based tokenized fund plans to expand to ZKsync, with 24/7 redemptions subject to liquidity. The fund is structured as a segregated portfolio company domiciled in the Cayman Islands. FIL Investments International, a subsidiary of FIL Limited, serves as investment manager."

"Moody's said the Aaa-mf assessment reflects a view that the fund maintains a very strong ability to meet its capital preservation and liquidity objectives. The fund follows the same investment strategy as the Aaa-mf-assessed Fidelity Institutional Liquidity Fund plc, an Irish-domiciled low- volatility net asset value fund. The fund issues tokenized units recorded initially on the Ethereum public blockchain, with plans to migrate subsequently to Zksync. Legal ownership of shares is maintained in an off-chain register held by Apex Fund Services (Malta) Limited, the transfer agent."

"The fund's weighted average maturity will stay below 60 days. At least 10% of assets must mature daily and 30% weekly. Overnight deposits will represent a significant portion of holdings, keeping exposure to market risk low. Institutional investors can subscribe and redeem either onchain through select stablecoins or off-chain in U.S. dollars through standard banking rails. Moody's noted this dual-track structure improves resilience in the event of blockchain outages."

"The fund is designed to offer near-instant liquidity with 24/7 redemptions, subject to available liquidity. Redemption requests submitted outside market hours that cannot be met will be queued and processed once market hours resume. Redeeming investors may face a fee when liquidity is provided outside market hours. Moody's said activating either the queuing mechanism or the liquidity fee outside market hours will not lower the fund's"

Moody’s assigned an Aaa-mf assessment to Fidelity International’s USD Digital Liquidity Fund, managed by FIL Investments International. The fund targets institutional investors and holds $34.5B in MMF assets under management. It is an Ethereum-based tokenized fund structured as a segregated portfolio company domiciled in the Cayman Islands, with plans to migrate to ZKsync. Tokenized units are initially recorded on the Ethereum public blockchain, while legal ownership of shares is maintained in an off-chain register held by the transfer agent. The fund follows a low-volatility strategy with weighted average maturity below 60 days, requiring at least 10% of assets to mature daily and 30% weekly. It offers near-instant liquidity with 24/7 redemptions, using on-chain stablecoin subscriptions and off-chain USD banking rails, and includes queuing and potential fees for redemptions outside market hours.

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