Sygnum, a global digital asset banking group, 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 Fidelity International's ("Fidelity") USD 6.9bn[i] 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 tokenisation solution with traditional securities. With the tokenisation of the investment in Fidelity's money market fund, Sygnum further strengthens Crypto-TradFi connections and lays the foundations for a fully-tokenised ecosystem.
Jürg Rimle, Country Head Switzerland at Fidelity International, says "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, says "Working with Fidelity and utilising 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, says "Moving USD 50m 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."
Matter Labs' strategic move bringing its treasury reserves on-chain is part of the growing Real World Assets (RWA) tokenisation trend which in 2023 increased 74% to USD 2.5bn[ii]. Their enhanced liquidity and accessibility - as well as the increased attractiveness of traditional yield-bearing instruments - is driving new levels of transparency, efficiency and new product creation in financial markets.