Chainlink to Bring NAV Data Onchain with Fidelity and Sygnum Bank

Chainlink announced its partnership with Sygnum, a digital asset bank, and Fidelity, a prominent investment management firm, to bring Net Asset Value (NAV) data onchain on July 3.

NAV data is crucial in the traditional fund industry as it represents the value of an investment fund. Chainlink’s network offers a chain-agnostic approach for disseminating NAV data. This means the data can securely propagate across any blockchain or existing offchain system. 

“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,” stated Sergey Nazarov, Co-founder of Chainlink.

Additionally, Chainlink provides cross-chain interoperability and dynamic synchronization to meet the needs of tokenized assets. This capability is crucial for powering programmable assets that stay updated across different environments.

The collaboration would reportedly provide transparency and accessibility around key asset data for Sygnum’s recently issued onchain representation of Fidelity International’s $6.9 billion Institutional Liquidity Fund. 

Sygnum has tokenized $50 million of Matter Labs’ company treasury reserves. The reserves are held in Fidelity International's money market fund and issued on the ZKsync blockchain, part of Chainlink SCALE.

Chainlink’s Expanding Influence

Chainlink’s cross-chain interoperability protocol (CCIP) has become a key component in various tokenization pilots. Major financial institutions like BNY Mellon, Citi, BNP Paribas, ANZ Bank, Lloyds Banking Group, and SIX Digital Exchange are utilizing CCIP. 

Officially announced on April 24, the general availability of CCIP allows developers to transfer tokens, send messages, and combine data and value transfers across different blockchains without needing permissions. This protocol enhances liquidity and market connectivity by facilitating tokenized asset transfers across public and private blockchains.

Chainlink’s CCIP influence continues to grow as Gnosis integrated CCIP and Automation live on its mainnet. This builds on their previous integration of Chainlink Price Feeds, enabling developers on Gnosis to leverage the full suite of Chainlink services. 

Additionally, RD Technologies, founded by former Chief Executive of the Hong Kong Monetary Authority (HKMA) Norman Chan, plans to integrate its Hong Kong dollar-based stablecoin, HKDR, with Chainlink's CCIP.