Chainlink announced a collaboration with Fidelity International and Sygnum to bring Net Asset Value (NAV) data onchain.
In this landmark production use case for tokenized assets, the collaboration provides transparency and accessibility “around key asset data for Sygnum’s recently issued onchain representation of Fidelity International’s $6.9 billion Institutional Liquidity Fund.”
Sygnum, a global digital asset banking group, “tokenized $50 million of Matter Labs’ company treasury reserves.”
The reserves are held in Fidelity International’s money market fund and “were issued on the ZKsync blockchain, a member of the Chainlink SCALE program.”
NAV data is a critical building block “that underpins the traditional fund industry today.”
With Chainlink, NAV data can be accurately “reported and synchronized onchain in an automated and secure manner, providing real-time transparency and built-in access to historical data for Sygnum, its clients, and broader market participants.”
Beyond this use case, Chainlink also provides “a chain-agnostic approach for disseminating NAV data, enabling the data to securely propagate across any blockchain or existing offchain system.”
The Chainlink Network goes far beyond onchain data delivery “to meet the three requirements of tokenized assets, providing cross-chain interoperability as well as dynamic synchronization to power programmable assets that stay updated across any environment.”
Fatmire Bekiri, Head of Tokenization at Sygnum said:
“As we work to bridge the gap between traditional finance and the blockchain industry, setting standards is crucial for fostering ecosystem participation and strengthening collaboration across blockchain companies, regulated financial institutions, and asset managers. This is an important milestone, and it’s exciting to see the great work that’s been done with Fidelity International, Chainlink, and Matter Labs come to fruition, and we look forward to keep building an onchain ecosystem in a regulated and compliant way.”
The announcement comes at a time when there is “a growing desire for blockchain-native companies to receive their assets and NAV data onchain from fund managers like Fidelity International.”
With Chainlink, NAV data can be accurately and “securely reported and updated onchain, as well as across any public or private blockchain.”
Sergey Nazarov, Co-founder of Chainlink said:
“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. The global reach and efficiency benefits of tokenized funds are far greater than traditional methods and will over time become the way the entire asset management industry operates.”
As noted in the update, Sygnum is “a global digital asset banking group, founded on Swiss and Singapore heritage.”
They empower professional and institutional investors, banks, corporates and DLT foundations to invest “in digital assets with complete trust.”
Their team enables this through their institutional-grade security, personal service and a portfolio of “regulated digital asset banking, asset management, tokenization and B2B services.”
In Switzerland, Sygnum holds “a banking license and has CMS and Major Payment Institution Licences in Singapore.”
The group is also regulated in the “established global financial hubs of Abu Dhabi and Luxembourg.”