Tokenization of Funds By Sygnum for Matter Labs
Swiss-based digital asset banking group Sygnum plans to invest $50 million in the Fidelity Institutional Liquidity Fund on behalf of client Matter Labs. The funds will be tokenized on the Ethereum-based zkSync layer-2 blockchain as part of Matter Labs' strategy to move its treasury reserves on-chain. This move aims to enhance transparency for Matter Labs' proof of reserves. Sygnum's co-founder Mathias Imbach highlighted the significance of this deal at the Digital Asset Summit 2024 in London. The zkSync blockchain, known for providing scalability to Ethereum DApps, has seen significant growth since its launch in 2018. Sygnum, known for being the first bank to tokenize its assets in 2020, continues to expand its services, including offering cryptocurrency staking and obtaining licenses for crypto brokerage services. The collaboration between Sygnum and Matter Labs showcases the increasing trend of tokenizing traditional assets for enhanced security and transparency.
