Moody's Downgrades Delta Wellington Ultra Short Treasury On-Chain Fund to A-bf

Strategic Insights -

Delta Wellington Ultra Short Treasury On-Chain Fund, a tokenized sub-fund of the Delta Master Trust managed by FundBridge Capital Pte. Ltd., has seen its bond fund assessment (BF) lowered to A-bf from Aa-bf by Moody's Ratings. The Fund primarily invests in US Treasury Bills with maturities not exceeding one year and issues tokenized units registered on a blockchain, which are subscribed to by institutional and accredited investors using USDC, a US dollar-denominated stablecoin. The downgrade reflects the deterioration in the maturity-adjusted weighted average credit quality of the Fund's investment portfolio following the recent downgrade of the US sovereign rating to Aa1, stable from Aaa, negative.

Key Takeaways:

  • The bond fund assessment (BF) of Delta Wellington Ultra Short Treasury On-Chain Fund has been lowered to A-bf from Aa-bf by Moody's Ratings.
  • The Fund primarily invests in US Treasury Bills with maturities not exceeding one year and issues tokenized units registered on a blockchain.
  • The downgrade reflects the deterioration in the maturity-adjusted weighted average credit quality of the Fund's investment portfolio following the recent downgrade of the US sovereign rating to Aa1, stable from Aaa, negative.
  • The Fund manager's lack of track record, small size, and key person risk, as well as the lack of experience of the technology service provider, contribute to the A-bf assessment.
  • Established service providers, such as Wellington Management Singapore Pte. Ltd. as the sub-adviser, Perpetual (Asia) Ltd as the trustee, and Standard Chartered Bank (Singapore) Limited as the custodian bank, mitigate some of these risks.
  • BF assessments are opinions of the maturity-adjusted credit quality of assets within the portfolio and operational risk associated with managing the fund.

Statistics:

  • The bond fund assessment (BF) of Delta Wellington Ultra Short Treasury On-Chain Fund has been lowered to A-bf from Aa-bf.
  • The Fund primarily invests in US Treasury Bills with maturities not exceeding one year.
  • The Fund's investment portfolio has experienced a deterioration in maturity-adjusted weighted average credit quality following the recent downgrade of the US sovereign rating to Aa1, stable from Aaa, negative.
  • The Fund manager's lack of track record and small size contribute to the A-bf assessment.

Sources:

  • Moody's Ratings (Moody's) -
  • Bond Funds published in March 2025 -
  • Methodologies & Frameworks page -
  • https://www.moodys.com/research/docid--PBC_1436517