- Backed, Sonic, and Chainlink collaborated to tokenize Fortlake’s funds.
- The tokenization strategy broadens DeFi access to traditional assets.
Backed, Sonic, and Chainlink recently announced a game-changing partnership to tokenize Sigma Opportunities Fund from Fortlake Asset Management. This is one giant leap in the emerging trend of real-world asset tokenization towards linking traditional finance and decentralized finance. They announced the partnership on December 4, bringing blockchain technology benefits to the traditional financial sector.
The Sigma Opportunities Fund is managed by Fortlake. It will be permitted to be tokenized, collateralized 1:1 with net asset value, and real-time pricing. This format would allow the tokens to seamlessly integrate into Sonic’s expanding DeFi ecosystem and bring new possibilities to the traditional assets within.
Bringing Traditional Assets into the Blockchain
According to Sam Harcourt, business development lead at Sonic, this project is the most important step for Sonic in achieving its vision of tokenizing financial assets around the world. He emphasized that institutions can leverage the superior blockchain of Sonic. The partnership will use Chainlink’s SmartData for NAV data and Proof of Reserves so that the assets under management and collateralized assets are indeed accurate. Chainlink’s CCIP will ensure liquidity is available across blockchains.
This is, therefore, a particularly important project for Backed. The company has a platform specifically focused on tokenizing private funds and other financial assets. With its Tokenization-as-a-Service (TaaS) platform, Backed is able to take blockchain capabilities to the next level of mass market adoption. This partnership with Fortlake represents the first real-world application of TaaS.
The fund, known for taking an active management approach, will target returns of 7–10% above the federal funds rate. Last year, it managed to achieve a 10% return through fixed income. Fortlake, set to expand its global fund by collaborating with blockchain platforms, will offer institutional investors an innovative way to participate in traditional financial assets on-chain.
The global RWA tokenization market has been on a growing path. With its market value standing over $13.21 billion today, it has huge opportunities for expansion to become a multi-trillion-dollar market in the near future through increasing institutional interest in blockchain-based investment products in the next 5 to 15 years.
