- On behalf of its client Matter Labs, Sygnum is investing $50 million into Fidelity’s Institutional Liquidity Fund (ILF)
- Sygnum generates on-chain representation by issuing security tokens that act as secure and transparent “Proof-of-Reserves” for Matter Labs’ treasury reserves
- Represents first step in Matter Labs’ long-term strategy to move its treasury reserves on-chain with trusted institutional custodians
- By tokenising traditional securities, Sygnum is strengthening the Crypto-TradFi bridge and laying the foundations for a fully-tokenised ecosystem
Sygnum, a global digital asset banking group, is tokenizing $50 million of Matter Labs’ treasury reserves onto the zkSync blockchain. The Sygnum-issued security tokens act as on-chain representations of units from Fidelity International’s $6.9 billion Institutional Liquidity Fund (ILF) to generate a secure and transparent “Proof-of-Reserves.”
Matter Labs is a software development, engineering, and cryptography company focused on creating scaling solutions for Ethereum and contributing to the improvement of zk-rollup technology, such as zkSync. zkSync is a layer 2 blockchain protocol designed to scale the performance of Ethereum, the second largest cryptocurrency. The investment marks the first step of Matter Labs’ long-term strategy to move its treasury reserves on-chain with institutional custodians like Sygnum.
This is the first project to leverage the capabilities of Sygnum’s multi-chain tokenization solution with traditional securities. With the tokenization of the investment in Fidelity’s money market fund, Sygnum further strengthens Crypto-TradFi connections and lays the foundations for a fully-tokenized ecosystem.
Jürg Rimle, Switzerland country head at Fidelity International, said in a statement: “We welcome the partnership with Sygnum Bank that expands access for professional and institutional investors – and strengthens the trusted bridge between the emerging digital asset economy and traditional finance.”
Fatmire Bekiri, Sygnum head of Tokenisation, said in a statement: “Working with Fidelity and utilizing zkSync, Sygnum leverages both the power of the blockchain and the experience of a global Tier 1 investment manager. It‘s a prime illustration of our mission to connect Crypto and Trad-Fi and build Future Finance on-chain.”
Marco Cora, Matter Labs SVP of Business and Operations, said in a statement “Moving $50 million of our treasury reserves onto the zkSync blockchain showcases its institutional-grade security as well as our commitment to transparency. We’re eager to collaborate with Sygnum to bring part of the Fidelity money market fund on the zkSync blockchain for investors.”