Fidelity and Sygnum sign agreement with Chainlink to transform tokenized asset data

In a groundbreaking collaboration, Fidelity International and Sygnum have partnered with Chainlink to Managing tokenized asset data.

This strategic partnershipunveiled at the Point Zero Forum, aims to integrate Net Asset Value (NAV) data on-chain. It will also improve accessibility and transparency in the digital asset sector.

Transforming tokenized asset data with Chainlink

This new Initiative is an important step in the integration of traditional finance and blockchain technology.

According to the announcement, Fidelity International, a global investment firm, and Sygnum, a leading cryptocurrency bank, Chain links Cutting-edge technology to bring NAV data into the chain.

The goal is to provide real-time and on-chain NAV data for Sygnum’s tokenized representation of Fidelity’s $6.9 billion Institutional Liquidity Fund.

Sygnum recently made headlines by tokenizing $50 million worth of Matter Labs treasury reserves. These reserves, held in Fidelity’s money market fund, will now run on the ZKsync blockchain, a crucial component of the Chainlink SCALE program.

This move represents a technological innovation and is part of a broader industry trend toward merging traditional financial systems with blockchain.

Chainlink’s central role in this transformation lies in its chain-agnostic approach, which enables secure and accurate dissemination of NAV data across different blockchains.

This ensures real-time transparency and provides access to historical data. Benefits for Sygnum’s customers and the broader market.

Fatmire Bekiri, Head of Tokenization at Sygnum, highlighted the importance of this partnership in bridging the gap between traditional finance and blockchain.

She stressed the need to set standards within the ecosystem and improve cooperation between regulated financial institutions, blockchain companies and asset managers.

The collaboration represents a joint effort by Fidelity, Chainlink and Matter Labs to build a compliant and regulated onchain ecosystem. The NAV integration aims to to meet the growing demand for such data Blockchain-native companies.

Importance of fund tokenization

In support, Chainlink’s technology enables secure and accurate updates of NAV data across both public and private blockchains. This is a crucial development as fund tokenization becomes a dominant trend in the digital asset space.

Sergey Nazarov, co-founder of Chainlink, pointed out that tokenization of funds is currently the most significant trend in cryptocurrencies.

He added that the partnership is a step forward into the token market for the global asset management firms involved. Nazarov also mentioned that token funds could surpass traditional global reach and efficiency and become the industry standard.

The benefits of NAV data integration Include real-time updatesbetter transparency and secure data exchange. By merging traditional finance with blockchain technology, the industry can even anticipate further developments.

However, this positive news did not affect Chainlink’s LINK as its price dropped slightly. trade at $14.41 amid a broader sell-off in the crypto market.

In addition, the open interest for Chainlink futures remained unchanged, indicating a inactive market performance at the time of announcement.