Sygnum and Fidelity International are leveraging Chainlink’s technologies to integrate real-time net asset value (NAV) data from the Fidelity Institutional Liquidity Fund, which amounts to $6.9 billion. This collaboration uses blockchain to provide instantaneous access to financial data.
Sygnum, a global group of digital banks, and Fidelity International, an American holding company, partnered with Chainlink, a developer of decentralized blockchain oracle networks. This partnership aims to use distributed ledger technology (DLT) to simplify access to financial data.
As part of this collaboration, data on net asset value (NAV) of the Fidelity Institutional Liquidity Fund will be transferred to the blockchain using Chainlink’s Cross-Chain Interoperability Protocol (CCIP). Subsequently, Sygnum’s clients will gain access to the data. This approach will enable real-time updates of financial data. Thus, Sygnum’s clients will have access to up-to-date NAV data from Fidelity, updated much faster than traditional systems that only update at the end of each trading day.
NAV represents a financial metric that calculates the value of an investment fund’s assets minus its liabilities, divided by the number of shares outstanding.
Recently, the prospects of using the CCIP, launched by Chainlink in 2023, for efficient data transmission of net asset values through DLT systems were tested by the Depository Trust & Clearing Corporation (DTCC). Previously, Chainlink’s developments were also employed by Vodafone for processing financial transactions and document transfers between IoT devices.
