Sygnum Bank breaks new ground by tokenizing $50 million worth of Matter Labs’ treasury reserves into the Fidelity Institutional Liquidity Fund, strengthening synergies between traditional finance and cryptocurrencies.
Sygnum, a prominent digital asset banking group, announced that it is tokenizing $50 million of Matter Labs’ treasury reserves. This strategic initiative was fueled by Fidelity International’s investment in the $6.9 billion Institutional Liquidity Fund (ILF), which represents a significant advance in the integration of blockchain technology with traditional financial products.
Matter Labs, known for its pioneering work scaling Ethereum through zk-rollup technology, has taken this step as part of a broader strategy to transition financial reserves to the blockchain. On-chain representation of Fidelity ILF units through security tokens issued by Sygnum provides a secure and transparent “proof of reserve” that aligns with Matter Labs’ commitment to transparency and institutional-grade security.
This project is the first to utilize Sygnum’s multi-chain tokenization solution, fusing the capabilities of traditional securities with the distinct advantages of blockchain. By tokenizing a portion of its investments in Fidelity’s money market funds, Sygnum is not only strengthening the Crypto-TradFi nexus but also laying the foundation for a fully tokenized financial ecosystem.
Jürg Rimle, Fidelity International’s Country Head for Switzerland, shared his enthusiasm for the partnership with Sygnum Bank, highlighting the increased accessibility provided to professional and institutional investors and the strengthened bridge between the digital asset economy and traditional finance.
Fatmire Bekiri, Head of Tokenization at Sygnum, elaborated on the potential of the collaboration, highlighting the combined strengths of blockchain technology and the expertise of Tier 1 global investment managers. This collaboration demonstrates Sygnum’s mission to build the future of on-chain finance by converging the cryptocurrency space with the traditional finance (Trad-Fi) sector.
Marco Cora, SVP of Business and Operations at Matter Labs, expressed the company’s desire to work with Sygnum to showcase institutional-grade security for the zkSync blockchain. The move to tokenize $50 million in treasury reserves highlights Matter Labs’ commitment to leveraging blockchain technology to increase investor trust and transparency.
The trend of real-world assets (RWA) tokenization, growing 74% to reach $2.5 billion in 2023, indicates growing interest and trust in the tokenization of traditional assets. Benefits such as improved liquidity, accessibility, and the creation of new financial products are driving the transition to more efficient and transparent financial markets.
With a banking license in Switzerland and licenses in Singapore, Abu Dhabi and Luxembourg, Sygnum has established itself as a leader in digital asset banking. The company’s vision for the “future of finance” is rooted in its Swiss and Singaporean heritage and bridges the gap between the traditional and digital asset economies.
As the digital asset space continues to evolve, Matter Labs’ tokenization of treasury reserves through Sygnum’s platform demonstrates the potential of innovative financial solutions leveraging blockchain technology. This is a step toward a future where digital and traditional financial services are no longer differentiated and are seamlessly integrated.
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