Theo puts $20M in Fidelity's tokenized fund as Treasury tokens hit $15B

Theo has deployed $20 million into Fidelity International's tokenized liquidity fund. The allocation goes into FILQ, the USD Digital Liquidity Fund that launched on May 13, 2026. It operates on Ethereum with plans for ZKsync integration, and it carries a Moody's AAA-mf rating.

Theo raised $20 million in April 2025 in a round led by Hack VC and Anthos Capital. Citadel and Jane Street are among the investors. The platform holds more than $225 million in total value locked and has processed over $1 billion in volume. The $20 million allocation is roughly 9% of its TVL.

Tokenized US Treasuries have surged past $15 billion onchain as of May 2026. That is up from about $5 billion in March 2025, a threefold increase in 14 months. BlackRock's BUIDL fund and Franklin Templeton have been the most visible players driving that expansion.

Smart contract vulnerabilities and regulatory uncertainty around tokenized securities remain real concerns. The concentration of TVL across a small number of platforms is another risk factor. For Theo, the allocation to a single fund introduces concentration risk on its own, though the AAA-mf rating on FILQ covers the credit side.

The fund targets professional and institutional investors with liquidity backed by government securities. Fidelity International built FILQ on Sygnum's Desygnate platform.