Leading blockchain firm, Chainlink has collaborated with Fidelity International and Sygnum to avail Net Asset Value (NAV) data on-chain. The firm made the announcement on Wednesday, providing insights into the details of the partnership.
As revealed, the collaboration is targeted at enhancing transparency and real-time data access in the virtual assets landscape. More so, the partnership marks a remarkable development in the tokenized assets space.
The partners intend to work on increasing transparency and easy access to important asset data most importantly for Sygnum’s on-chain representation of Fidelity International Institutional Liquidity Fund. As per the announcement, the Institutional Liquidity Fund of Fidelity International is worth $6.9 billion.
It is worth mentioning that Sygnum recently carried out the tokenization of Matter Labs’ treasury reserves. However, the reserves are kept within the money market fund of Fidelity International. Furthermore, as indicated, the reserves operate on the ZKsync blockchain which is an important part of the Chainlink SCALE initiative.
Additionally, the integration reflects the commitment of Chainlink to meeting the growing demands of tokenized assets by ensuring cross-chain interoperability and dynamic data synchronization.
Meanwhile, the partnership between Chainlink, Fidelity International, and Sygnum is an indication of the increasing integration of blockchain solutions and fund management. The growing synergy between the two sectors has opened the gateway for institutional investors to explore the blockchain and crypto market.
In 2024, the United States Securities and Exchange Commission (SEC) approved ETF applications for two of the largest cryptocurrencies; Bitcoin and Ethereum. Lately, rumors for SOL ETF have also intensified amidst a huge influx of investors to the cryptocurrency market.
Side Note On the Partnership Between Chainlink, Sygnum, Fidelity
The Co-founder of Chainlink, Sergey Nazarov also weighed in on the collaboration. Sergey Nazarov disclosed that the tokenization of funds is the latest trend in the digital assets sector. He highlighted that the integration is a pathway for global asset management firms to enter the tokenized market.
Similarly, the co-founder discussed how tokenized funds have higher efficiency and global reach than traditional methods. Lastly, Nazarov added that tokenization will soon become a standard in the asset management landscape.
Also, the Head of Tokenization at Sygnum, Fatmire Bekiri noted that the collaboration is a crucial step in integrating traditional finance into the blockchain sphere. The executive discussed the importance of setting standards for participating in the blockchain and crypto ecosystem.
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