This summer at Point Zero Forum, Chainlink announced a collaboration with Fidelity International and Sygnum to bring net asset value (NAV) data for Fidelity International’s $6.9 billion Institutional Liquidity Fund onchain. Sygnum, a global digital asset banking group, tokenized $50 million of Matter Labs’ company treasury reserves, which are held in Fidelity International’s money market fund and were issued on the ZKsync Ethereum layer-2.
In a new video, Sygnum co-founder and Group CEO Mathias Imbach reflected on the significance of this collaboration, outlined the convergence of TradFi with DeFi, and distilled Chainlink’s vital role in unleashing tokenization’s full potential in the onchain economy.
“Chainlink allows us to fill a gap that has really always been there in terms of scaling tokenization and bringing assets onchain,” he said.
As the industry-standard decentralized computing platform, Chainlink has enabled over $15 trillion in transaction value and provides a comprehensive set of services that are critical for creating and securing tokenized real-world assets with unique utility, such as fractionalization and programmability, through their entire life cycle across multiple blockchains.
Imbach described the ability to securely and transparently access NAV data throughout the cross-chain ecosystem as the foundation on which regulated financial institutions will tokenize new and traditional asset classes onchain.
As illustrated by Swift’s proof of concept, Chainlink’s Cross-Chain Interoperability Protocol (CCIP) allows traditional financial institutions to transact with blockchains using their existing infrastructure. This unlocks new markets and use cases for tokenized assets by allowing them to flow freely between private bank chains and public DeFi applications.
Imbach believes tokenizing funds onchain with Chainlink is just the first stop on the path toward tokenizing “anything of value” onchain.
“Tokenization has not picked up fully or to the extent it can so far because key components have been missing, and a key component is, for example, bringing net asset value onchain,” he explained.
“Without this, you cannot leverage onchain assets as collateral in various types or forms. I think Chainlink has a huge opportunity and also an important role to play in actually unleashing the overall potential of tokenization and DLT overall. I’m very excited about the partnership and I hope it’s just a start to many more things to come.”
Watch the full video.