- The collaboration between Sygnum and Matter Labs to tokenize $50 million of treasury reserves onto the zkSync blockchain underscores the growing trend of tokenizing real-world assets (RWA).
- By leveraging blockchain technology and issuing security tokens representing units from Fidelity International’s Institutional Liquidity Fund (ILF), Sygnum and Matter Labs are pioneering a new era of transparency and trust in institutional finance
In a significant development, Sygnum, a digital asset bank, has collaborated with Matter Labs, the core developer of zkSync Layer 2 blockchain, to tokenize $50 million of Matter Labs’ treasury reserves. This move involves utilizing zkSync, a Layer 2 blockchain protocol designed to scale Ethereum decentralized applications (dapps).
The tokenization process will involve issuing security tokens by Sygnum, representing units from Fidelity International’s Institutional Liquidity Fund (ILF). These tokens will serve as transparent and secure “proof-of-reserves” for Matter Labs’ treasury, providing assurance regarding the security of the reserves.
Fatmire Bekiri, Head of Tokenization at Sygnum, emphasized the strategic importance of this collaboration, highlighting the integration of blockchain technology with the expertise of a leading investment manager like Fidelity. This endeavor reflects Sygnum’s commitment to bridging the gap between traditional finance (TradFi) and the crypto space, aiming to pioneer the future of finance on-chain.
For Matter Labs, the tokenization of its treasury reserves marks the initial phase of its long-term strategy to transition its reserves on-chain. By partnering with institutional custodians like Sygnum, Matter Labs seeks to ensure institutional-grade security and transparency for its reserves, setting a precedent for further advancements in the field.
Marco Cora, Senior Vice President of Business and Operations at Matter Labs, underscored the significance of this move, highlighting the institutional-grade security offered by zkSync. Cora expressed eagerness to collaborate with Sygnum in bringing a portion of Fidelity’s money market fund onto the zkSync blockchain, offering new opportunities for investors in the realm of decentralized finance (DeFi).
This strategic move by Matter Labs aligns with the broader trend of tokenizing real-world assets (RWA), which has seen substantial growth in recent years. According to a study, RWA tokenization witnessed a remarkable 74% increase in 2023, amounting to $2.5 billion. By embracing this trend, Matter Labs aims to leverage the benefits of blockchain technology while enhancing transparency and accessibility in the management of treasury reserves.
Sygnum: Pioneering Digital Asset Banking with Swiss and Singaporean Expertise
Sygnum, the world’s premier digital asset bank, stands at the forefront of digital finance, rooted in the rich heritage of both Switzerland and Singapore. As the first of its kind, Sygnum bridges traditional banking with the burgeoning digital asset economy, offering unparalleled opportunities for institutional and private investors worldwide.
With a steadfast commitment to trust and transparency, Sygnum provides a robust, regulated banking platform, empowering clients ranging from corporates to financial institutions to engage confidently in the digital asset ecosystem. Leveraging its Swiss and Singaporean roots, Sygnum sets a new standard for digital asset banking, driving innovation and accessibility in global finance.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
