The partnership will make Fidelity's Institutional Liquidity Fund's $6.9 billion net asset value available on the blockchain in real-time.
Chainlink will work with Fidelity International and Sygnum Bank to bring net asset value (NAV) data to the blockchain.
According to an announcement on July 3, the initiative will see the net asset value of Fidelity's $6.9 billion Institutional Liquidity Fund accessible via blockchain in real time.
Net asset value, as a financial measure, is used to determine the value of a fund's assets without its liabilities, divided by the number of shares outstanding. By bringing NAV data to the blockchain, it will be accessible in real-time, unlike traditional methods, which usually update mutual fund data after each trading day.
The data will also be available to clients of Signum Bank, which recently tokenized $50 million worth of Mater Labs’ vaults, as part of the company’s strategy to move its treasury reserves to the blockchain, and invest in short-term, high-quality debt securities, such as those offered by funds. Shared.
The Fidelity Institutional Liquidity Fund offers a diversified portfolio of money market sub-funds, primarily to institutional investors.
Commenting on the partnership, Sergey Nazarov, co-founder of Chainlink, said in a statement: “Fund tokenization is probably the biggest trend currently in the digital assets space, which confirms that global asset management companies are entering this growing market.”
In Nazarov's view, tokenized funds offer much greater benefits than traditional methods, and over time, “this will become the way the entire asset management industry operates,” said Nazarov.