Revolutionizing Finance: A New Era in Asset Tokenization
Backed, a leading asset tokenization platform, has announced a strategic alliance with Sonic, a blockchain compatible with the Ethereum Virtual Machine (EVM), and Chainlink (LINK), a prominent on-chain finance platform. This collaboration is aimed at the tokenization of Fortlake’s Sigma Opportunities Fund. This groundbreaking initiative was reported by Finbold on Wednesday, December 4.
Given the robust market positions of each participant, this partnership is poised to significantly advance the integration of traditional financial assets into the blockchain ecosystem.
Transforming the Sigma Opportunities Fund Through Tokenization
Advertisement Banner
Within this strategic partnership, Backed is set to tokenize the Sigma Opportunities Fund by issuing permissionless tokens, each backed 1:1 by fund units. The token values will be closely aligned with the fund’s Net Asset Value (NAV) in real time, ensuring seamless compatibility with Sonic’s decentralized finance (DeFi) framework.
Chainlink will play a crucial role by utilizing its SmartData solutions to ensure smooth on-chain data flow for NAV. Additionally, its Proof of Reserves and Cross-Chain Interoperability Protocol (CCIP) will verify collateral and manage assets across chains efficiently.
Fortlake will maintain oversight of the Sigma Opportunities Fund, which aims to generate returns of 7–10% over the federal funds rate by leveraging market inefficiencies. Notably, the fund achieved a remarkable 10% return in the past year.
The Strategic Choice: Fortlake’s Partnership with Sonic
Sonic is an attractive partner for Fortlake due to its impressive capability of processing 10,000 transactions per second (TPS) with one-second finality. This focus on scalability in real-world asset tokenization aligns perfectly with Fortlake’s objective to streamline back-office operations.
Adam Levi, Co-Founder of Backed, expressed his enthusiasm for the venture:
“Tokenizing the Fortlake Sigma Fund marks a significant milestone in the blockchain landscape. It demonstrates how institutions can leverage blockchain technology to simplify operations and access new capital. This partnership underscores our dedication to revolutionizing the management and trading of financial assets.”
— Adam Levi
Colin Cunningham, Head of Tokenization & Alliances at Chainlink Labs, shared his optimism about Chainlink’s potential to enhance the liquidity of Fortlake’s fund.
Sam Harcourt, Business Development Lead at Sonic, articulated Sonic’s ambitious vision for DeFi innovations:
“This is just the beginning. Sonic is committed to bringing its advanced technology to financial institutions globally.”
— Sam Harcourt
Pioneering Tokenization Solutions
This initiative marks a significant first for Backed as a Tokenization-as-a-Service (TaaS) platform. By offering cutting-edge tokenization solutions, Backed aims to expand opportunities for financial institutions and elevate blockchain’s prominence in traditional finance. This is particularly crucial as BlackRock enters the market and the Bank of America predicts a $16 trillion market in the next decade.
Early projects, like those conducted by the Hong Kong Monetary Authority and JPMorgan (NYSE: JPM), further highlight blockchain’s transformative potential in asset management.
In conclusion, the partnership between Backed, Sonic, and Chainlink represents a significant stride towards a more efficient and innovative financial system, showcasing how blockchain technology can revolutionize asset management in the modern financial landscape.
