Bybit to Offer Tokenized AAA-Rated Money Market Fund as Trading Collateral

Cryptocurrency exchange Bybit has announced a collaboration with wealth technology platform Finloop to launch a tokenized money market fund product for institutional and professional investors. The new offering, Finloop USD Instant Digital Liquidity (FUIDL), is backed by an AAA-rated U.S. dollar liquidity fund and will be accepted as trading collateral on Bybit's platform.

Product Details and Investor Benefits

FUIDL is designed to provide eligible investors with on-chain access to a traditional, high-quality U.S. dollar liquidity fund. According to the July 29 announcement, the product aims to enhance capital efficiency by allowing investors to move assets seamlessly between traditional and digital financial markets.

The underlying money market fund holds the highest possible credit ratings from major agencies:

• AAAm from Standard & Poor’s (S&P)
• Aaa-mf from Moody’s
• AAAmmf from Fitch

Key features for investors include hourly subscription and redemption capabilities, as well as T+0 (same-day) interest accrual, subject to fund arrival times. Finloop acts as the tokenization agent, providing the infrastructure to connect the traditional fund assets with blockchain-based settlement.

Bridging Traditional and Digital Finance

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The partnership marks a significant move into the tokenization of Real-World Assets (RWAs), combining the stability of regulated financial products with the speed and transparency of blockchain technology. The initiative is part of Bybit's stated mission to build an open and efficient bridge between the two financial ecosystems.

"Partnering with Finloop marks a pivotal step in realizing our vision of The New Financial Platform," said Yoyee Wang, Global Head of TradFi and RWA at Bybit. "This collaboration turns that vision into action, merging institutional-grade trust with the efficiency of digital infrastructure of Bybit."

Strategic Implications and Settlement

The collaboration will leverage Bybit's custody solution, ByCustody, with Finloop’s tokenization technology to pilot T+0 settlement for select asset types. The companies plan a global rollout of this capability throughout 2026, aiming to set new industry standards for transaction speed and operational risk management.

"This collaboration demonstrates how a wealth technology platform and a digital exchange can work together to achieve instantaneous settlement while meeting high operational and regulatory standards," stated Cai Hua, CEO of Finloop. "We are proud to partner with Bybit on this milestone that sets new benchmarks for efficiency and trust in the digital asset space."