Company focused on asset tokenization solutions, Backed along with Sonic, an Ethereum Virtual Machine (EVM) Layer 1 blockchain, and Chainlink, the standard for on-chain finance, have announced a partnership with Fortlake Asset Management to tokenize their Sigma Opportunities Fund. This collaboration marks a major milestone in bringing traditional financial assets onto the blockchain.
“Partnering with Backed, Sonic, and Chainlink to tokenize the Sigma Opportunities Fund is a substantial development in the way we provide access to our fund for the rapidly growing digital asset investor base,” said Christian Baylis, Fortlake Founder and CIO, in a written statement. “We believe this collaboration marks the beginning of a new era in traditional asset management fundraising,” he added.
The Sigma Opportunities Fund is being tokenized by Backed, which creates permissionless tokens collateralized 1:1 by fund units, with their value linked to the real-time Net Asset Value (NAV). This allows the tokens to be DeFi-compatible and usable within the Sonic ecosystem. Chainlink SmartData will provide on-chain NAV data for the underlying fund shares, Chainlink Proof of Reserves will verify the collateralization and Assets Under Management (AUM), and Chainlink CCIP will facilitate seamless cross-chain liquidity and operations.
Fortlake, recently named Fixed Income Manager of the Year in Australia, manages the Sigma Opportunities Fund, a global fixed-income strategy targeting returns 7-10% above the federal funds rate. The fund focuses on exploiting market distortions to achieve strong returns, having delivered a 10% return over the past year through active fixed-income investments.
Sonic, previously known as Fantom, is a high-speed Layer 1 blockchain that is EVM-compatible. It offers developers incentives and powerful infrastructure, achieving 10,000 transactions per second (TPS) with one-second finality. Its unique consensus mechanism and developer-centric approach have made it a preferred choice for decentralized applications, especially in the DeFi space. Sonic’s ability to process a high volume of transactions with low latency makes it well-suited for tokenizing real-world assets.
Backed’s Tokenization Of Fortlake’s Sigma Fund Marks Key Milestone In Its Asset Tokenization Expansion
The tokenization of Fortlake’s Sigma Fund represents a notable milestone for Backed, as it is the first fund to be processed through its Tokenization-as-a-Service (TaaS) platform. This achievement highlights Backed’s expansion into private tokenization and its ability to offer similar tokenization services to other funds and financial institutions. Moving forward, Backed aims to broaden its service offerings, exploring new opportunities to provide the blockchain ecosystem with greater flexibility and increased access to tokenized assets.
By tokenizing the fund, new possibilities emerge within decentralized finance, such as integration with lending markets, usage as a high-yield stablecoin savings solution, or acting as collateral for margin trading.
With BlackRock recently entering the tokenization space, other asset managers are increasingly exploring the potential and opportunities it offers. The Bank of America has predicted that asset tokenization could exceed $16 trillion within the next 5 to 15 years. Tokenization initiatives by institutions like the Hong Kong Monetary Authority and JP Morgan have already demonstrated considerable cost savings through blockchain-based tokenization solutions.
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