Sygnum, Fidelity, Chainlink Partner to Bring Net Asset Value Onchain

Chainlink

has partnered with Fidelity International and Sygnum to bring Net Asset Value (NAV) data onchain, the firm announced at the Point Zero Forum held in Zurich today.

The partnership will mark a step toward tokenization of assets and accessibility of key asset data. The focus is on the onchain representation of Fidelity International’s $6.9 billion Institutional Liquidity Fund, recently issued by Sygnum.

We’re excited to announce that Fidelity International and Sygnum have partnered with #Chainlink to provide NAV data onchain for Fidelity International’s $6.9B money market fund.

This is a landmark production use case for tokenized assets 🧵https://t.co/dfQ3Shgx6f pic.twitter.com/o0sT4JOQNj

— Chainlink (@chainlink) July 3, 2024

Sygnum Tokenizes $50M of Matter Labs Treasury Reserves

So far, Sygnum said it has tokenized $50 million of Matter Labs’ company treasury reserves, which are held in Fidelity’s International money market fund and issued on the ZKsync blockchain.

NAV data, is an important component of the traditional fund industry. NAV can now be accurately reported and synchronized onchain through Chainlink’s tech, said the firms in a joint announcement,

Using Chainlink, NAV data can be secured and automatically reported onchain, providing real-time transparency and access to historical data for Sygnum, its clients, and broader market participants.

Chainlink’s has a “chain-agnostic approach” to disseminating NAV data, allowing secure propagation across any blockchain or existing offchain systems. Chain-agnostic is an approach where an application is designed to work with multiple blockchain platforms without being tied to a specific one.

Chainlink Allows NAV Data to Be Reported Onchain

“With Chainlink, NAV data can be accurately and securely reported and updated onchain, as well as across any public or private blockchain,” said Sergey Nazarov, Co-founder of Chainlink.

“Fund tokenization is likely the largest digital asset trend happening today, and it is a large confirmation that global asset management firms are entering this growing market,” adds Nazarov.

The Rise of Tokenization

The partnership between Chainlink, Fidelity International, and Sygnum sees the tokenization of assets trend strengthening.

In October 2023, Sygnum partnered with Float and Fasanara Capital, to release a new tokenized private debt instrument, giving access to private debt. The token was launched by Float on the Polygon blockchain. Tokenization for private markets and particularly interest in private debt has seen increased interest.

As the trend of fund tokenization continues to grow, this deal sets a new standard for integrating traditional finance with blockchain technology, paving the way for a more interconnected and efficient financial ecosystem.