Theo Invests $20 Million in Fidelity International Tokenized Fund

Theo, an on-chain capital markets platform, invested $20 million in Fidelity International’s tokenized fund, becoming the fund’s first crypto-native investor.

Cointelegraph reported on June 30 that Theo invested in Fidelity International’s USD Digital Liquidity Fund, or FILQ. The investment was executed through Sygnum, the Swiss digital-asset bank. Theo also added FILQ to thBILL, its tokenized Treasury product for institutional clients.

FILQ is a tokenized dollar liquidity fund built on Sygnum’s Desygnate platform. It aims to preserve principal and liquidity by investing across short-term money-market instruments. Chainlink provides the fund’s on-chain net asset value and distribution data through its runtime environment, while JPMorgan receives and approves daily NAV data.

On-chain data show FILQ currently has about $55.1 million in on-chain assets under management, making Theo’s investment a sizable share of the fund. Fidelity International had $1.06 trillion in assets under management as of the end of March.

Tokenized US Treasuries have grown into the largest segment of the real-world asset tokenization market. Data from RWA.xyz show the market has more than doubled over the past year, expanding from about $6.9 billion at the end of June last year to about $14.6 billion at the end of June. Circle, BlackRock, Ondo, Franklin Templeton and Securitize now each manage more than $2 billion in distributed value.

Traditional financial firms are also continuing to launch tokenized funds. JPMorgan launched JLTXX, a tokenized Treasury money-market fund built on Ethereum, in May. Franklin Templeton partnered with MoonPay in June to expand access to its BENJI fund, allowing institutional investors to move between stablecoins and tokenized funds through an on-chain workflow.