Chainlink Partners with Fidelity and Sygnum to Bring Real-Time NAV Data On-Chain for Improved Transparency
lockchain oracle network Chainlink has joined forces with Fidelity International and crypto bank Sygnum to bring net asset value (NAV) data on-chain.
This collaboration, as detailed in a statement released Wednesday, July 3, 2024, seeks to enhance transparency and accessibility for NAV data in tokenized assets.
Net Asset Value (NAV) is a financial metric used to calculate the value of a fund’s assets minus its liabilities, divided by the number of outstanding shares. By putting NAV data on the blockchain, this information becomes available in real time. This is in contrast to traditional methods, which usually update mutual fund data only at the end of each trading day.
The project focuses on Sygnum’s recent on-chain representation of $50 million in Matter Labs’ treasury reserves, held within Fidelity’s $6.9 billion Institutional Liquidity Fund. Chainlink’s technology will enable secure storage and automated synchronization of NAV data for these tokens on the ZKsync blockchain.
“With Chainlink, NAV data can be accurately reported and synchronized onchain in an automated and secure manner, providing real-time transparency and built-in access to historical data,”
the press release stated.
This is particularly useful for Sygnum as it enables its clients—and broader market participants—to quickly access historical data on these assets.
Additionally, Chainlink’s chain-agnostic approach ensures secure data distribution across various blockchain networks or offchain systems.
Chainlink co-founder Sergey Nazarov emphasized the significance of this development:
“Fund tokenization is likely the largest digital asset trend happening today, and it confirms that global asset management firms are entering this growing market. The global reach and efficiency benefits of tokenized funds far exceed those of traditional methods and will eventually become the standard for the entire asset management industry.”
The move aligns with broader industry trends. In May, the Depository Trust and Clearing Corporation (DTCC) announced successful results from its Smart NAV industry pilot, which used Chainlink’s Cross-Chain Interoperability Protocol (CCIP). This pilot demonstrated that on-chain delivery of structured data could integrate foundational information into various applications, such as tokenized funds and bulk consumer smart contracts.
The DTCC noted that it is already planning to expand its pilot to support a wider array of use cases across multiple blockchains.
As the financial industry continues embracing blockchain technology, initiatives like these pave the way for more efficient, transparent, and accessible asset management practices.
