Chainlink, a leading blockchain oracle network, has partnered with Fidelity International and Sygnum Bank to bring Net Asset Value (NAV) data onchain, enabling transparency and accessibility for tokenized assets. This landmark collaboration showcases Chainlink’s critical role in powering the tokenization of traditional finance (TradFi) assets.
Bringing NAV Data Onchain
NAV data is a crucial metric that underpins the traditional fund industry. By integrating with Chainlink, Fidelity International and Sygnum Bank can accurately report and synchronize NAV data onchain in an automated and secure manner. This provides real-time transparency and built-in access to historical data for Sygnum, its clients, and broader market participants.
Chainlink’s chain-agnostic approach allows NAV data to securely propagate across any blockchain or existing offchain system. This is essential for the tokenized asset economy, as Chainlink enables cross-chain interoperability and dynamic synchronization to power programmable assets that stay updated across any environment.
Tokenizing Fidelity’s Institutional Liquidity Fund
Sygnum Bank, a global digital asset banking group, has tokenized $50 million of Matter Labs’ treasury reserves held in Fidelity International’s $6.9 billion Institutional Liquidity Fund. The reserves are issued on the ZKsync blockchain, a member of the Chainlink SCALE program.
By tokenizing traditional securities, Sygnum is strengthening the bridge between crypto and TradFi, laying the foundations for a fully-tokenized ecosystem. This project leverages Sygnum’s multi-chain tokenization solution, showcasing the institutional-grade security and transparency of the ZKsync blockchain.
Driving the Tokenization Economy
Chainlink’s collaboration with Fidelity International and Sygnum Bank marks a significant milestone in the growing tokenization market. In 2023, the Real World Assets (RWA) tokenization trend increased by 74% to $2.5 billion, driven by enhanced liquidity, accessibility, and the attractiveness of traditional yield-bearing instruments.
As Sergey Nazarov, Co-founder of Chainlink, states, “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.” Chainlink’s role in this collaboration underscores its position as the industry-standard infrastructure for the tokenized asset economy.
By providing essential services such as data feeds, cross-chain interoperability, and security, Chainlink enables both the buy-side (asset managers, pension funds, DAOs) and sell-side (corporate banks, investment banks, market makers) of the tokenized asset ecosystem. This two-sided marketplace creates a positive feedback loop, driving increased liquidity and utility for tokenized assets.
In conclusion, Chainlink’s partnership with Fidelity International and Sygnum Bank demonstrates its pivotal role in powering the tokenization of traditional finance assets. By bringing NAV data onchain, enabling cross-chain interoperability, and providing essential infrastructure, Chainlink is at the forefront of the growing tokenization economy.
