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

Asset tokenization solution Backed, layer 1 blockchain Sonic and on-chain finance platform Chainlink have teamed up to tokenize Fortlake Asset Management’s Sigma Opportunities Fund.

Backed, Sonic (S) (formerly Fantom (FTM)) and Chainlink (LINK) announced their collaboration on December 4. In a press release shared with Crypto.news, the companies stated that this tokenization initiative is the first step in their pursuit. Bringing traditional financial assets on chain.

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

These tokens will be collateralized at a 1:1 ratio, with their prices pegged to real-time net asset value. According to the platforms, this design creates decentralized finance-ready tokens that can be used across Sonic’s expanding ecosystem.

“This is one of Sonic’s first steps towards tokenizing financial assets worldwide and bringing the benefits of Sonic technology to traditional financial institutions.”

Sam Harcourt is business development leader at Sonic.

Fund shares will use Chainlink SmartData for NAV data, while Chainlink Proof of Reserves will verify collateralized assets and assets under management. The collaboration will also use Chainlink’s CCIP for cross-chain liquidity.

A first for Backed’s TaaS platform

The partnership between these major crypto and blockchain industry players marks a significant milestone for Backed.

Backed, a tokenization platform that bridges traditional finance and DeFi, has launched its tokenization-as-a-service platform. TaaS offers a solution for the tokenization of private funds, extending on-chain capabilities to the broader traditional financial market.

The use of Backed technology in Fortlake’s Sigma fund represents the first implementation of this platform.

The initiative is also a big deal for Fortlake, a fixed income manager recently recognized as Australia’s Fixed Income Manager of the Year.

Partnering with crypto platforms will allow Forlake to expand its actively managed global fund, which targets returns of 7-10% above the federal funds rate. Last year, the fund achieved a 10% return thanks to active fixed income investments.

Over the past year, the real-world asset tokenization market has grown significantly, driven by increased interest from institutional investors.

The market benefited from products and funds from companies such as Blackock and Franklin Templeton. Data shows that the global RWA on-chain market is currently worth over $13.21 billion. Growth forecasts indicate that this market could grow into a multi-trillion-dollar opportunity within the next 5 to 15 years.