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Chainlink has partnered with crypto bank Sygnum and Fidelity International to bring net asset value (NAV) data onchain.
By bringing the data to the blockchain, the firms plan to offer greater transparency and accessibility for tokenized assets.
In particular, the partnership will bolster Sygnum's recently tokenized $50 million from Matter Labs, which is held in Fidelity International's $6.9 billion Institutional Liquidity Fund.
Chainlink will provide the secure storage and automated synchronization of NAV data for these tokens on the ZKsync blockchain, a participant in Chainlink’s SCALE program.
“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,” said Sergey Nazarov, co-founder of Chainlink.
“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.”
A Smart NAV industry pilot held by Depository Trust and Clearing Corporation (DTCC) and Chainlink was completed in May.
“The pilot found that by delivering structured data onchain and creating standard roles and processes, foundational data could be embedded into a multitude of onchain use cases, such as tokenized funds and “bulk consumer” smart contracts, which are contracts that hold data for multiple funds,” DTCC said.
Last month, Fidelity International chose JP Morgan’s Onyx blockchain to tokenize BlackRock's MMF shares.
Blockhead
“Tokenizing our money market fund shares to use as collateral is an important and natural first step in scaling our adoption of this technology,” Stephen Whyman, Fidelity International's head of debt capital markets, said.
