A crypto-native firm has bought into a Fidelity tokenized fund for the first time, in a sign that the line between traditional asset management and onchain capital markets is continuing to blur. Onchain capital markets platform Theo has invested $20 million in Fidelity International’s USD Digital Liquidity Fund (FILQ), executed through Swiss digital asset bank Sygnum.
Deal structure and mechanics
The allocation was executed through Sygnum, a Swiss digital asset bank offering regulated banking, custody, and tokenization services for institutional clients. The investment adds FILQ to Theo’s existing institutional tokenized Treasury product, known as thBILL.
FILQ carries a Moody’s Aaa-mf rating and is built on Sygnum’s Desygnate platform. The fund invests in diversified short-term money market instruments with a focus on capital and liquidity preservation. Chainlink supplies onchain net asset value and distribution data via its Runtime Environment, while JPMorgan receives and approves the daily NAV data.
Scale of the allocation
According to RWA.xyz data, FILQ currently manages approximately $55.1 million in onchain assets, meaning Theo’s $20 million contribution represents a significant share of the fund, roughly a third of its total holdings. Fidelity International managed $1.06 trillion in total assets as of March 31. Theo, for its part, reported more than $1 billion in cumulative trading volume across more than 80,000 users in over 60 countries.
Tokenized Treasury market context
Tokenized US Treasury products have become the dominant segment of the tokenized real-world asset market. RWA.xyz data shows the sector more than doubled over the past year, growing from roughly $6.9 billion in distributed value in late June 2025 to approximately $14.6 billion by late June 2026.
The platform currently tracks 83 tokenized Treasury products held by more than 64,000 investors. Products from Circle, BlackRock, Ondo, Franklin Templeton, and Securitize each manage more than $2 billion in distributed value.
Traditional finance expanding onchain
Recent months have seen a wave of traditional financial firms launching or extending tokenized fund products. In May, JPMorgan launched JLTXX, a tokenized government money market fund on Ethereum that invests in US Treasury bills and overnight repurchase agreements.
Franklin Templeton followed in June by partnering with MoonPay to expand institutional access to its BENJI tokenized money market fund. The arrangement allows eligible institutions to move between supported stablecoins and tokenized fund exposure through an onchain trading workflow.
