Sygnum FIUSD Liquidity Fund fiusd

Sygnum FIUSD Liquidity Fund (FIUSD) is a Sygnum-issued security token representing units of Fidelity International’s Institutional Liquidity Fund (ILF), a short-term money-market fund. The product places a traditional cash-management instrument on the zkSync Era blockchain as a regulated-bank tokenization use case. Sygnum’s product catalogue classifies it as a traditional security token in the Money Market Fund category.

Sygnum launched the tokenization use case for Matter Labs in March 2024, investing USD 50 million of Matter Labs’ treasury reserves into Fidelity’s ILF and issuing on-chain tokens as a transparent representation and proof of reserves. Fidelity’s ILF was described as a USD 6.9 billion fund at the end of February 2024. FIUSD should therefore be understood as tokenized exposure to an underlying fund unit, not as an independently managed cryptocurrency protocol or an unsecured fiat stablecoin.

The token is designed for professional/institutional access through Sygnum’s banking and tokenization infrastructure. Sygnum describes tokenized assets as divisible, on-chain recorded investments, with subscriptions handled through Desygnate and secondary trading available through SygnEx, its regulated organized trading facility.

Availability and transferability are permissioned: Sygnum’s investor FAQ says access is generally for Sygnum clients, issuers can configure investor permissions, and security tokens cannot be transferred to an external private wallet; only Sygnum-custodied, whitelisted wallets are currently supported.

Conventional money-market-fund units are issued and administered through traditional financial rails, which can make ownership records, settlement and treasury movement slower and less composable with blockchain markets. Crypto-native treasuries also need transparent evidence that off-chain reserves actually exist and are held with institutional custodians.

FIUSD addresses this by linking a traditional Fidelity liquidity-fund position to an on-chain security-token record. This can provide fractional ownership, verifiable supply and blockchain settlement while retaining a regulated-bank custody and compliance layer. It does not remove the risks of the underlying fund, the token issuer, permissioned access, liquidity availability or the legal/regulatory restrictions described by Sygnum.

Sygnum invests client assets into Fidelity International’s Institutional Liquidity Fund and issues FIUSD security tokens that represent the relevant fund units. The tokens are minted on zkSync Era; DefiLlama tracks the product by reading the token contract’s ERC-20 totalSupply, treating the aggregate minted supply as TVL. The contract identified by the public adapter is 0x2AB105A3eAd22731082B790CA9A00D9A3A7627F9.

An eligible investor can subscribe through Sygnum’s primary issuance platform, Desygnate, or place a buy order on SygnEx. Sygnum states that its SygnEx venue is an organized trading facility under Article 42(a) of the Swiss Financial Market Infrastructure Act, permitting multilateral trading; it is not described as an open, permissionless AMM.

Sygnum provides custody for the token and says client assets are off-balance-sheet, ring-fenced from Sygnum’s own assets, with critical key material stored in Switzerland. Token holders cannot currently move FIUSD to arbitrary self-custody wallets: wallets held in Sygnum custody are whitelisted. Thus the model combines an on-chain representation and supply record with permissioned custody, KYC/AML and transfer controls.