Chainlink has formed a significant alliance with Fidelity International and Sygnum, aiming to bring Net Asset Value (NAV) data onchain. Announced on July 3, this collaboration will make the NAV of Fidelity’s $6.9 billion Institutional Liquidity Fund accessible onchain in real-time.
Traditionally, NAV—a metric determining the value of a fund’s assets minus its liabilities, divided by outstanding shares—updates after each trading day. This onchain integration will enable real-time access, marking a substantial shift in the financial industry.
Sygnum’s clients will benefit directly from this initiative. Recently, Sygnum tokenized $50 million from Matter Labs’ treasuries, part of Matter Labs’ broader strategy to move treasury reserves onchain while still investing in high-quality, short-term debt securities. Fidelity’s Institutional Liquidity Fund, primarily targeting institutional investors, offers various money market sub-funds.
Sergey Nazarov, Chainlink’s co-founder, highlighted the significance of this move, describing fund tokenization as a leading trend in the digital asset space. Nazarov emphasized that tokenized funds offer far greater efficiency benefits compared to traditional methods and predicted that this approach would eventually become standard practice across the asset management industry.
In a related development, the Depository Trust and Clearing Corporation (DTCC) announced in May the results of its Smart NAV industry pilot, which utilized Chainlink’s Cross-Chain Interoperability Protocol (CCIP).
The pilot, aimed at extending the DTCC’s Mutual Fund Profile Service I (MFPS I), demonstrated that delivering structured data onchain and establishing standard roles and processes could embed foundational data into numerous onchain use cases, such as tokenized funds and bulk consumer smart contracts.
The DTCC sees the potential to expand the pilot’s scope, leveraging the technology to support a broader range of use cases across multiple blockchains, signaling a transformative era for the financial industry.
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