Chainlink to handle on-chain NAV for Sygnum’s $50 million tokenized Matter Labs treasury News ▸ Chainlink ▸ Technology
Chainlink to handle on-chain NAV for Sygnum’s $50 million tokenized Matter Labs treasury
Institutional interest in Chainlink's LINK token has risen, according to Lookonchain.
2 min read
Updated: Jul. 3, 2024 at 4:03 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Fidelity International and Sygnum have partnered with Chainlink to bring Net Asset Value (NAV) data on-chain, as announced on July 3.
This partnership marks showcases the potential advancement through tokenized assets, enhancing transparency and accessibility for fund data. Specifically, it will support Sygnum’s on-chain representation of units of Fidelity International’s $6.9 billion Institutional Liquidity Fund, where $50 million of tokenized Matter Labs’ Treasury reserves issued on the zkSync Blockchain are currently held.
On-chain NAV data
NAV data is crucial in the financial industry as it indicates the price at which investors buy or redeem a fund unit. The financial institution’s partnership with Chainlink would bring this data on-chain, improving the investment experience. The press statement reads:
“With Chainlink, NAV data can be reported and synchronized on-chain accurately, providing real-time transparency and access to historical data for Sygnum, its clients, and market participants.”
Chainlink offers a chain-agnostic system for NAV data dissemination, ensuring secure data delivery across any blockchain or off-chain system.
This integration also meets the core requirements of tokenized assets, enabling cross-chain interoperability and dynamic synchronization to maintain up-to-date programmable assets.
Fatmire Bekiri, Sygnum’s Head of Tokenization, stated that this partnership bridges the gap between traditional finance and the blockchain industry.
This view was also shared by Sergey Nazarov, Chainlink’s co-founder, who noted the rising popularity of fund tokenization. He added:
“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.”
LINK’s institutional adoption rises
The new partnership arrives when institutional interest in Chainlink‘s LINK token is rising.
On July 2, blockchain investigator Lookonchain reported that an institution/whale was accumulating the Oracle network’s native token. According to the analyst, 54 fresh wallets withdrew 2.08 million, worth more than $30 million, from the Binance exchange.
Crypto traders usually interpret exchange withdrawals as a bullish signal that suggests an investor is unwilling to sell and wants to hold the asset for the long term.
However, the move had little impact on LINK’s price, which remained relatively stable the past day, falling by 0.5% to $14.4 as of press time.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Chainlink is a decentralized oracle network that connects smart contracts on the blockchain to real-world data.
Sergey Nazarov began his career building peer-to-peer marketplaces, going on to the investment team at FirstMark Capital.