Chainlink, Fidelity International, and Sygnum have united to introduce on-chain Net Asset Value (NAV) data for a substantial $6.9 billion money market fund. This partnership was revealed during the Point Zero Forum on July 3.
A digital asset banking group, Sygnum, tokenizes $50 million of Matter Labs’ treasury reserves, held in Fidelity International’s Institutional Liquidity Fund. Sygnum issued the tokenized assets on the ZKsync blockchain.
Chainlink’s technology enables real-time, automated reporting of NAV data on-chain, providing great transparency for Sygnum, its clients, and market participants. This chain-agnostic approach allows secure data propagation across various blockchain networks and traditional systems.
Chainlink’s co-founder, Sergey Nazarov, highlighted fund tokenization as a major trend in digital assets. He predicted:
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.
Increasing institutional interest in Chainlink
Meanwhile, institutional investors have shown increasing interest in Chainlink (LINK). On-chain data reveals that 54 new wallets withdrew 2.08 million LINK tokens, worth $30.28 million, from Binance in the past week.
Chainlink’s Cross-Chain Interoperability Protocol (CCIP) has been a key driver of this institutional interest. CCIP now supports nine major blockchains, including Ethereum, Polygon, and BNB Chain, enhancing its utility and reach.
Additionally, the Depository Trust and Clearing Corporation (DTCC) recently wrapped up a successful Smart NAV trial with Chainlink’s CCIP. Engaging ten market participants, this trial showcased the secure transfer of NAV data across various blockchain platforms.
Despite recent progress, the value of LINK now sits at $14.27, marking a 72% decrease from its peak in May 2021, as per CoinMarketcap. However, experts link this drop to the growing supply of tokens, which has surged from 425 million to 608 million since May 2021.
Market analysts express confidence in LINK’s future despite current conditions. Notably, crypto expert Michaël van de Poppe foresees a bullish trend in the near term, citing consistent patterns in LINK’s price behavior.
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