DeFi
Chainlink Partners with Fidelity and Sygnum to Bring NAV Data On-Chain
- Chainlink partners with Fidelity and Sygnum to bring NAV data on-chain for real-time access.
- Collaboration improves transparency and efficiency of NAV reporting using blockchain.
- This initiative sets a new standard in asset management, highlighting the potential of DeFi.
In a revolutionary move for the cryptocurrency and finance sectors, Chain link 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 improve the transparency and efficiency of NAV reporting, setting a new standard for real-time data accessibility. It underscores the potential of blockchain to transform traditional financial systems and highlights Chainlink’s growing influence in the industry.
Implementation of NAV data on the chain for real-time updates
Net asset value (NAV) is a key financial metric that calculates the value of a fund’s assets minus its liabilities, divided by the number of shares outstanding.
Traditionally, NAV data is updated at the end of each trading day, which can delay accurate investment thinking.
The collaboration between Fidelity, Sygnum and Chainlink aims to integrate NAV data on-chain, enabling accurate real-time updates, offering a significant improvement over conventional methods. This will improve 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 will have access to this onchain data, consistent with Matter Labs’ strategy to move treasury reserves onchain while continuing 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 Sets New Standard in Asset Management
Chainlink co-founder Sergey Nazarov noted that tokenized funds offer much greater efficiency benefits than traditional methods. He predicts that this approach will eventually become the norm in the asset management industry.
The Depository Trust and Clearing Corporation (DTCC) has also recognized the potential of on-chain 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 on-chain NAV data. pilot reportThe pilot demonstrated that providing structured data on-chain could integrate foundational data into many use cases, such as tokenized funds and smart contracts containing data for multiple funds.
The partnership between Chainlink, Fidelity and Sygnum marks a significant step forward in the integration of blockchain technology into traditional financial systems.
By bringing NAV data on-chain, this collaboration improves data transparency, efficiency and accuracy, potentially setting a new standard for the asset management industry and highlighting the transformative potential of decentralized finance.