Backed, Sonic and Chainlink partner to tokenoze Fortlake’s Sigma fund

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As a seasoned financial analyst with over two decades of experience navigating the complexities of traditional finance and blockchain technology, this partnership between Backed, Sonic, and Chainlink is nothing short of groundbreaking. The tokenization of Fortlake’s Sigma Opportunities Fund is a significant stride in bridging the gap between traditional finance and decentralized finance (DeFi).

The asset tokenization solution Backed, the primary blockchain network Sonic, and the decentralized finance platform Chainlink are collaborating to convert the Sigma Opportunities Fund managed by Fortlake Asset Management into digital tokens.

On December 4th, Sonic (S), previously known as Fantom (FTM), and Chainlink (LINK) revealed their partnership. In a press release distributed to crypto.news, they highlighted that this tokenization project represents the initial move towards integrating conventional financial assets onto the blockchain.

Chainlink and Sonic will assist Backed in tokenizing Fortlake’s fund via permissionless tokens.

Each token is backed one-for-one by real assets, ensuring its value stays aligned with current market value. The creators claim this structure makes these tokens suitable for decentralized finance and compatible with Sonic’s growing network.

“Sonic is taking one initial action towards global tokenization of financial assets, aiming to share the benefits of its technology with conventional financial organizations worldwide.

Sam Harcourt, business development lead at Sonic.

In this partnership, fund shares will employ Chainlink’s SmartData for Net Asset Value calculations, while Chainlink’s Proof of Reserves system will ensure the validity of both collateralized assets and assets under management. Furthermore, they plan to leverage Chainlink’s Cross-Chain Interoperability Protocol (CCIP) for seamless liquidity across different blockchains.

A first for Backed’s TaaS platform

This alliance among prominent figures in the cryptocurrency and blockchain sector represents a major achievement for Backed.

Through our tokenization platform connecting traditional finance with decentralized finance (DeFi), Backed introduced their service for tokenizing assets. This platform, known as Tokenization-as-a-Service (TaaS), offers a method for tokenizing private funds, thereby expanding the on-chain functionalities to a wider traditional financial market.

Employing Backed’s technology for the first time with Fortlake’s Sigma fund signifies the initial utilization of this platform.

As a researcher, I’d like to emphasize the significance of this initiative for my organization, Fortlake – a distinguished fixed-income manager that has just been named “Fixed Income Manager of the Year” in Australia.

Collaborating with cryptocurrency platforms could help Fortlake extend its scope for its actively managed worldwide investment fund, aiming for returns that are 7–10% higher than the federal funds rate. Over the past year, this fund has yielded a 10% return through strategic fixed-income investments.

Over the last twelve months, the market for converting tangible assets into digital tokens has significantly expanded, fueled by a rising curiosity from institutional investors.

Companies such as Blackrock and Franklin Templeton have contributed positively to the market with their products and funds. At present, the worldwide on-chain digital asset risk-weighted asset (RWA) market exceeds $13.21 billion according to statistics. Experts predict that this market could grow into a trillion-dollar opportunity within the next 5 to 15 years.

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2024-12-04 18:41