Chainlink partners with Fidelity and Sygnum to bring NAV data onchain.
ChainLink has partnered with Fidelity and Sygnum to bring NAV onchain for real-time access. The collaboration will enhance transparency and efficiency in NAV reporting using blockchain. This initiative highlights the potential of DeFi and sets a new standard for asset management.
In a major move for the cryptocurrency and financial sectors, Chainlink has partnered with Fidelity International and Sygnum to bring Net Asset Value (NAV) data on-chain.
This strategic collaboration aims to leverage ChainLink's decentralized Oracle technology to enhance the transparency and efficiency of NAV reporting, thereby setting a new standard for real-time data access. It highlights blockchain's potential to transform traditional financial systems and demonstrates Chainlink's growing influence in the industry.
Bring NAV data onchain to get instant updates
NAV is an important financial metric that is the value of a fund's assets minus its liabilities, divided by the number of shares outstanding.
Normally, NAV data is updated at the end of each trading day, which may delay the accurate reflection of the investment.
The collaboration between Fidelity, Signum and Chainlink aims to bring NAV data onchain and thus enable real-time updates, providing a significant improvement over conventional methods. This will increase transparency and efficiency for institutional investors.
Fidelity's $6.9 billion Institutional Liquidity Fund will be the first to benefit from this innovative approach.
Sygnum clients can access this onchain information, aligning with Matter Labs' strategy as they continue to invest in high-quality debt securities.
By embracing blockchain technology, Fidelity and Sygnum demonstrate their commitment to innovation and belief in the transformative potential of decentralized finance (DeFi).
Chainlink is setting a new standard in asset management.
Sergey Nazarov, co-founder of Chainlink, emphasized that tokenized funds offer much greater efficiency benefits compared to traditional methods. He predicts that this approach will eventually become commonplace in the property management industry.
Depository Trust and Clearing Corporation (DTCC) has recognized the potential of onchain NAV data.
In a recent industry pilot using Chainlink's Cross-Chain Interoperability Protocol (CCIP), DTCC explored extending its mutual fund profile service to include onchain NAV data. According to the pilot report, the pilot demonstrated that the onchain delivery of structured data can be used to hold data for multiple funds, such as tokenized funds and smart contracts.
The partnership between ChainLink, Fidelity and Signum represents a major step forward in integrating blockchain technology with traditional financial systems.
By bringing NAV data onchain, this collaboration will increase transparency, efficiency and data accuracy, potentially setting a new standard for the asset management industry and demonstrating the transformative potential of decentralized finance.
