TL;DR
- Sygnum tokenizes $50 million of Matter Labs treasury reserves on the zkSync blockchain.
- Security tokens issued by Sygnum represent units of Fidelity International’s Institutional Liquidity Fund (ILF).
- This initiative strengthens the bridge between crypto and traditional finance, laying the foundations for a fully tokenized ecosystem.
In a significant step towards merging traditional finance and cryptocurrencies, Sygnum, a global digital asset banking group, has announced the tokenization of $50 million of Matter Labs treasury reserves on the zkSync blockchain.
This strategic decision represents a milestone on the path towards transparency and efficiency in financial markets.
📣 News: Sygnum tokenises Matter Labs’ treasury reserves in USD 6.9bn Fidelity MMFhttps://t.co/QvYjx8O1e2
Sygnum is tokenising USD 50m of Matter Labs’ treasury reserves onto the zkSync #blockchain. The Sygnum-issued security tokens act as on-chain representations of units from…
— Sygnum Bank (@sygnumofficial) March 19, 2024
Tokenization of traditional assets is a growing phenomenon at the intersection between traditional finance and cryptocurrencies.
In this case, security tokens issued by Sygnum act as on-chain representations of units of Fidelity International’s Institutional Liquidity Fund (ILF), valued at $6.9 billion.
This action not only ensures the transparency of Matter Labs treasury reserves, but also demonstrates the viability of collaboration between traditional financial institutions and blockchain technology companies.
Collaboration between Sygnum, Matter Labs and Fidelity International marks a milestone between crypto and traditional finance
Jürg Rimle, Switzerland Country Head at Fidelity International, expressed his support for this initiative, highlighting the value of expanding access for professional and institutional investors and strengthening the trusted bridge between the emerging digital asset economy and traditional finance.
This tokenization not only benefits the parties involved, but also lays the foundation for a fully tokenized financial ecosystem.
Fatmire Bekiri, Head of Tokenization at Sygnum, highlighted the importance of this initiative to connect crypto and traditional finance, demonstrating Sygnum‘s commitment to building the on-chain financial future.
In addition to strengthening the connection between the worlds of cryptocurrency and traditional finance, this tokenization also reflects a growing trend in the real-world asset ( RWA ) tokenization industry.
According to data from Galaxy Digital, this trend saw a 74% increase in 2023, reaching a total of $2.5 billion.
This underlines the growing interest in improving liquidity, accessibility and transparency in financial markets through tokenization.
Sygnum’s tokenization of Matter Labs treasury reserves represents a bold step towards the future of finance.
With collaboration between traditional financial institutions and blockchain technology companies, the foundations are being laid for a more transparent, efficient and accessible financial ecosystem for all participants.
