Chainlink Partners with Fidelity International and Sygnum to Bring Fund NAV Data Onchain

In a significant move for the tokenized asset economy, Chainlink has announced a collaboration with Fidelity International and Sygnum to bring Net Asset Value (NAV) data onchain. This partnership, revealed at the Point Zero Forum on July 3, 2024, aims to enhance transparency and accessibility of key asset data for tokenized funds.

The collaboration centers on Sygnum’s recent tokenization of $50 million from Matter Labs’ company treasury reserves, which are held in Fidelity International’s $6.9 billion Institutional Liquidity Fund. These tokens were issued on the ZKsync blockchain, a member of the Chainlink SCALE program.

Chainlink’s technology will enable the secure and automated synchronization of NAV data onchain, providing real-time transparency and access to historical data for Sygnum, its clients, and broader market participants. This marks a significant departure from traditional methods, where mutual fund data is typically updated only after each trading day.

Sergey Nazarov, Co-founder of Chainlink, emphasized the importance of this development, stating, “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.” He added that the efficiency benefits of tokenized funds far outweigh traditional methods and predicted this approach would eventually become standard across the asset management industry.

Fatmire Bekiri, Head of Tokenization at Sygnum, highlighted the importance of setting standards to bridge the gap between traditional finance and the blockchain industry. She noted that this collaboration represents a crucial milestone in building a regulated and compliant onchain ecosystem.

The partnership comes at a time when blockchain-native companies are increasingly seeking to receive their assets and NAV data onchain from established fund managers like Fidelity International. Chainlink’s solution not only allows for accurate and secure reporting of NAV data onchain but also enables its distribution across any public or private blockchain.

This initiative follows other significant developments in the space, including the Depository Trust and Clearing Corporation’s (DTCC) Smart NAV industry pilot, which also utilized Chainlink’s technology. The DTCC pilot explored extending its Mutual Fund Profile Service I for transmitting NAV data, demonstrating the growing interest in onchain solutions for traditional financial services.

As the tokenized asset economy continues to evolve, partnerships like this between established financial institutions, digital asset specialists, and blockchain infrastructure providers are likely to play a crucial role in shaping the future of asset management and financial services.