The crypto-forward banking group is tokenizing funds in the Fidelity Institutional Liquidity Fund, the first time it has tokenized traditional assets.
Swiss-based global digital asset banking group Sygnum will invest $50 million in the Fidelity Institutional Liquidity Fund on behalf of its client Matter Labs. Those funds will be tokenized as the first step in Matter Labs’ long-term strategy to move all of its treasury reserves on-chain with institutional custodians.
The funds will be tokenized onto the Ethereum-based zkSync layer-2 blockchain, which Matter Labs curates. The tokenized funds will represent part of Matter Labs’ holdings in the Fidelity Institutional Liquidity Fund, an open-ended $6.3-billion umbrella for money-market funds that is domiciled in Ireland.
The funds are intended to provide transparency for Matter Labs’ proof of reserves. Matter Labs senior vice president of business and operations Marco Cora said in a statement, "Moving USD 50m of our treasury reserves onto the zkSync blockchain showcases its institutional-grade security as well as our commitment to transparency.”
