- Fortlake Asset Management has partnered with Backed, Sonic, and Chainlink to tokenize its Sigma Opportunities Fund for seamless blockchain integration.
- Chainlink’s SmartData, Proof of Reserves, and CCIP ensure transparency, collateral verification, and cross-chain liquidity.
In a post on X, Fortlake Asset Management has announced its partnership with Backed, Sonic (formerly Fantom), and Chainlink to tokenize its Sigma Opportunities Fund. This partnership is intended to make the fund readily accessible and plug it into DeFi, leveraging the best blockchain technologies for transparency, market depth, and operational effectiveness.
Fortlake Asset Management—a fund manager backed by JP Morgan—is launching a tokenized fund on @0xSonicLabs, facilitated by @BackedFi & powered by the #Chainlink standard.
Chainlink CCIP and SmartData will be key drivers of the fund's adoption & utility.https://t.co/To48MAWpO8 pic.twitter.com/7SCMOsPNfd
— Chainlink (@chainlink) December 4, 2024
Chainlink will be instrumental in the effective running of the fund on the blockchain. This way, the company’s SmartData will offer real-time NAV information of the fund shares which have been invested in allowing investors to track the actual value of the fund shares on the blockchain.
Chainlink’s Proof of Reserves will ensure that the collateral and assets managed are legitimate in order to build trust. Furthermore, the Chainlink CCIP will enable cross-chain liquidity and operations, thus improving the fund’s accessibility and usability within the Sonic ecosystem.
Tokenized Funds Benefits
The tokenization of Fortlake’s Sigma Opportunities Fund represents a milestone in the ongoing trend of traditional asset management adopting blockchain technology. Backed’s platform will create permissionless tokens, each collateralized 1 to 1 by the fund’s units, with the token’s price tied to its real-time NAV.
These tokens will be used in the DeFi space for investment purposes and will bring traditional financial assets into the world of blockchains. Adam Levi of Backed echoed this, saying that the Sigma Fund tokenization is a perfect example of how institutions can use blockchain to make their business more efficient and access new capital markets.
Sonic is a layer one blockchain that is EVM compatible and provides a high through put infrastructure for tokenization of real-world assets. Sonic processes 10,000 transactions per second with one-second finality which makes it ideal for DeFi use cases and tokenization.
The Sigma Opportunities Fund will be tokenized and will be able to use Sonics architecture for efficient transactions and integration with other DeFi projects. The tokenization of the Sigma Opportunities Fund will open new prospects for decentralized finance, given the current situation.
Institutional Interest Fuels Market Growth
Real-world assets tokenization is still relatively new, but it is growing at a fast pace, with institutional investors being very active. Some of the major products and funds have been launched in the market by firms for instance BlackRock and Franklin Templeton.
The current global RWA on-chain market stands at over $13.21 billion, and the growth rate estimated to be at 5 to 15 times the current valuation within the next 5 to 15 years. This growth has also been seen in Chainlink’s native token, LINK; as of this writing, Link is trading at $24 with a market cap of $15.20B.
The latest price surge in the LINK token has reignited the debate about the asset’s position in the financial system. Some proponents have gone further and started to label LINK as the ‘true bank coin’ in comparison to XRP.
Zach Rynes, known in the crypto community as ChainLinkGod, pointed to Chainlink’s increasing collaboration with the world’s largest financial institutions. According to Rynes, Chainlink is partnering with the biggest institutions across the globe to connect banks with blockchain.
