Fidelity, Sygnum partner with Chainlink to bring NAV data onchain

Decentralized computing platform Chainlink today announced a collaboration with Fidelity International and crypto bank Sygnum on a project that focuses on bringing net asset value data onchain.

The partnership aims to provide transparency and accessibility for NAV data in tokenized assets, specifically Sygnum’s recently issued onchain representation of $50 million Matter Labs’ treasury reserves held in Fidelity's $6.9 billion Institutional Liquidity Fund, according to a Wednesday statement. 

Chainlink said in the release that its technology facilitates the secure storage and automated synchronization of NAV data for these tokens on the ZKsync blockchain, which is a member of Chainlink’s SCALE program.

“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 for Sygnum, its clients, and broader market participants,” the press release said.

Chainlink added that its chain-agnostic approach helps to distribute data securely across various blockchain networks or offchain systems. 

“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,” said Sergey Nazarov, co-founder of Chainlink. “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.”

In May, the Depository Trust and Clearing Corporation and Chainlink completed their pilot program, named Smart NAV, with market participants including BNY Mellon, JPMorgan and Invesco. Smart NAV explored ways to standardize the distribution of NAV data across multiple blockchains.