Fidelity’s $6.9 billion Institutional Liquidity Fund’s Net Asset Value will be accessible onchain in real time as a result of the partnership.
Chainlink has collaborated with Sygnum and Fidelity International to provide Net Asset Value (NAV) data onchain.
The NAV of Fidelity’s $6.9 billion Institutional Liquidity Fund will be accessible onchain in real time, as per an announcement made on July 3.
The net asset value (NAV) of a fund is the sum of its assets and liabilities, divided by the number of shares outstanding. In contrast to conventional methods, which typically update mutual fund data after each trading day, NAV data is now accessible in real-time by bringing it onchain.
Sygnum’s patrons will have access to the data. Sygnum recently tokenized $50 million from Matter Labs’ treasuries. The initiative was a component of Matter Labs’ strategy to invest in short-term, high-quality debt securities, such as those offered by mutual funds, while simultaneously transitioning its treasury reserves to the blockchain.
Fidelity’s Institutional Liquidity Fund provides institutional investors with a diverse selection of money market sub-funds.
“Fund tokenization is likely the most significant digital asset trend currently underway, and it serves as a significant indication that global asset management firms are entering this expanding market,” stated Sergey Nazarov, Chainlink’s co-founder, in a statement.
To Nazarov, tokenized funds offer significantly more efficiency benefits than conventional methods. He stated that they will eventually “become the way the entire asset management industry operates.”
The Depository Trust and Clearing Corporation (DTCC) disclosed the outcomes of its Smart NAV industry pilot in May, which utilized Chainlink’s Cross-Chain Interoperability Protocol (CCIP).
The pilot sought to investigate an expansion of the DTCC’s Mutual Fund Profile Service I (MFPS I), a standard for transmitting “price and rate” data, also referred to as NAV. In a report, the DTCC stated:
“Many onchain use cases, including tokenized funds and “bulk consumer” smart contracts that store data for many funds, might benefit from foundational data that was discovered during the trial by providing structured data onchain and establishing consistent roles and procedures.”
According to the DTCC, there is a potential opportunity to “expand the scope of the pilot” in order to support a “broader spectrum of use cases” across a larger number of blockchains.
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