Fidelity and Sygnum partner with Chainlink to bring tokenized asset net asset value (NAV) data on-chain

The leading oracle provider Chainlink announced a partnership with Fidelity International and the crypto bank Sygnum to bring the net asset value (NAV) data of tokenized assets onto the blockchain, offering real-time visibility and transparency for data viewing.

Fidelity, Sygnum, and Chainlink Collaboration

The official announcement from Sygnum stated that the collaboration between Chainlink, Fidelity, and Sygnum aims to enhance the transparency and real-time data updates of the Net Asset Value (NAV) data in tokenized assets, eliminating the inefficiencies of traditional financial markets in updating data after each trading day's close.

NAV, as a financial indicator, determines the net value of a fund by subtracting its liabilities from its assets and dividing by the number of outstanding shares.

Fidelity has mentioned that this collaboration will enable the data of their over $6.9 billion institutional investor liquidity fund to be audited in real-time on the blockchain.

This includes Sygnum's tokenization of a $50 million company financial reserve from zkSync developer Matter Labs:

NAV data is a crucial component supporting the current traditional fund industry, and with Chainlink's technology, NAV data can be accurately disclosed, synchronized, and accessed in an automated and secure manner on the ZKsync blockchain through the Chainlink SCALE program.

In a joint statement, Chainlink co-founder Sergey Nazarov emphasized:

The tokenization of funds may be the most significant digital asset trend today, demonstrating the fact that global asset management companies are entering this market.

He added, "The efficiency advantages of tokenized funds far exceed traditional methods, and their global coverage continues to grow, gradually becoming the operational norm for the entire asset management industry."

Pilot Program Collaboration with DTCC

In May of this year, Chainlink also completed a pilot program named "Smart NAV" with the Depository Trust & Clearing Corporation (DTCC), aiming to enhance the speed and accessibility of data dissemination in financial markets through blockchain technology. They hope to explore new opportunities in financial services through further integration of digital assets.

It is reported that the project explores DTCC's transmission of "price and rate" data through Chainlink's cross-chain interoperability protocol CCIP, within the Common Fund Data Service IMFPS I.

Notably, participants in the program include major Wall Street giants such as BNY Mellon, JPMorgan, Franklin Templeton, Invesco, among others.

DTCC Collaborates with Chainlink to Provide On-Chain Data Integration Services, JPMorgan Also Participates

Last month, Chainlink commented on the technical failure incident at the New York Stock Exchange (NYSE) and took the opportunity to promote its own product:

Chainlink's decentralized oracle network reduces these risks by providing accurate, tamper-proof data. By using data from multiple sources and consensus mechanisms to verify messages, the likelihood of erroneous trades and price manipulation events occurring is reduced.