Chainlink announced today at the Point Zero Forum in Zurich that it has partnered with Sygnum and Fidelity International to provide net asset value (NAV) data on the blockchain.
The partnership will represent a significant advancement in the tokenization of assets and the accessibility of critical asset data. The primary focus is the on-chain representation of Fidelity International’s $6.9 billion Institutional Liquidity Fund, which Sygnum recently issued.
Sygnum Tokenizes $50M of Matter Labs Treasury Reserves
Sygnum has thus far tokenized $50 million of Matter Labs’ corporate treasury reserves, which are currently held in Fidelity’s International money market fund and issued on the ZKsync blockchain.
NAV data significantly influence the traditional fund industry. The companies said in a joint announcement that NAV can now be accurately reported and synchronized on-chain through Chainlink’s technology.
Sygnum, its clients, and broader market participants can access historical data and experience real-time transparency through the secure and automatic reporting of NAV data on-chain through Chainlink.
Chainlink employs a “chain-agnostic approach” to disseminate NAV data, which enables secure propagation across any blockchain or extant off-chain systems. An application is designed to function with multiple blockchain platforms without being associated with a particular one, which is called chain-agnostic.
Chainlink Allows NAV Data to Be Reported Onchain
Sergey Nazarov, co-founder of Chainlink, stated that NAV data can be accurately and securely reported and updated on Chainlink and across any public or private blockchain.
“Fund tokenization is likely the most significant digital asset trend currently underway, and it indicates that global asset management firms are entering this expanding market,” Nazarov continues.
The Emergence of Tokenization
The trend of tokenization of assets is expected to strengthen due to the partnership between Chainlink, Fidelity International, and Sygnum.
A new tokenized private debt instrument, which provides access to private debt, was released by Sygnum in October 2023 in partnership with Float and Fasanara Capital.
Float deployed the token on the Polygon blockchain. Interest in private debt and tokenization for private markets has increased.
This agreement establishes a new benchmark for integrating traditional finance with blockchain technology, thereby facilitating the development of a more interconnected and efficient financial ecosystem as the trend of fund tokenization continues to grow.