Backed, Sonic, and Chainlink Partner with Fortlake for Landmark Fund Tokenization
Zug, Switzerland, December 4th, 2024, Chainwire
Backed, a pioneer in asset tokenization solutions, Sonic (fka Fantom), an EVM L1 blockchain that offers developers attractive incentives and powerful infrastructure, and Chainlink, the standard for on-chain finance, have announced that they are partnering with Fortlake Asset Management to tokenize their Sigma Opportunities Fund marking a significant milestone in bringing traditional financial assets on-chain.
The fund is being tokenized by Backed, creating permissionless tokens that are collateralized 1 to 1 by fund units, with the price tied to the real-time Net Asset Value (NAV). This means tokens are DeFi ready, and usable within the Sonic ecosystem. Chainlink SmartData will deliver NAV data of the underlying fund shares on-chain, Chainlink Proof of Reserves will help verify collateralization and AUM, and Chainlink CCIP will enable seamless cross-chain liquidity and operations.
Fortlake was recently voted Fixed Income Manager of the Year in Australia. Its Sigma Opportunities Fund is an actively managed global fixed-income investment strategy that targets 7-10% above the fed funds rate, focusing on utilizing market distortions to achieve this strong return. In the past year, the fund has returned 10% via active fixed-income investments.
Sonic, formerly known as Fantom, is a high-speed layer-1 EVM-compatible blockchain that offers developers attractive incentives and powerful infrastructure. The chain achieves 10,000 TPS at one-second finality. Its innovative consensus mechanism and focus on developer experience have made it a popular choice for decentralized applications mainly DeFi protocols. Sonic’s ability to handle a high volume of transactions with low latency makes it an ideal platform for tokenizing real-world assets.
“Tokenizing the Fortlake Sigma Fund is a major step forward in the blockchain landscape. It showcases how institutions can use blockchain technology to simplify back-office operations and reach new capital.” said Adam Levi at Backed “This partnership reflects our commitment to transforming how financial assets are managed and traded.”
“We’re excited to work with Backed and Fortlake on the first RWAs tokenized on Sonic,” said Colin Cunningham, Head of Tokenization & Alliances at Chainlink Labs. “As the standard for on-chain finance, Chainlink will help drive the adoption, utility, and liquidity of Fortlake’s tokenized fund.”
“This is one of the first steps for Sonic in its pathway to tokenizing financial assets across the globe and bringing the advantages of Sonic technology to traditional financial institutions” said Sam Harcourt, Business Development Lead at Sonic.
The tokenization of Fortlake’s Sigma Fund marks an important milestone for Backed, as it is the first fund to go through its Tokenization-as-a-Service (TaaS) platform. This achievement highlights Backed’s expansion into private tokenization, continuing to offer similar tokenization solutions for other funds and financial institutions. Backed will broaden its services by further exploring new opportunities, providing the blockchain ecosystem with even greater flexibility and access to tokenized assets.
“Partnering with Backed, Sonic, and Chainlink to tokenize the Sigma Opportunities Fund is a substantial development in the way we provide access to our fund for the rapidly growing digital asset investor base,” said Christian Baylis Fortlake Founder and CIO. “We believe this collaboration marks the beginning of a new era in traditional asset management fund raising.”
Tokenizing the fund leads to new opportunities within decentralized finance, such as integrations with lending markets, use as a high-yield stablecoin savings solution, or as margin trading collateral. With BlackRock recently joining the tokenization race, other asset managers are starting to quickly explore this space and the opportunities it brings. The Bank of America predicts that asset tokenization could surpass $16 trillion in the next 5-15 years. Tokenization experiments by institutions such as the Hong Kong Monetary Authority and JP Morgan have shown significant savings by utilizing blockchain-based tokenization.
About Fortlake
Fortlake Asset Management, as an experienced fixed-income manager, offers institutional expertise in a specialized setting, focusing on generating returns above inflation. Fortlake embraces a comprehensive approach to fixed-income investment by employing diverse specialized techniques and strategies to yield diversified returns.
About Backed
Backed brings real-world assets on-chain. Backed issues permissionless tokens that track the value of real-world assets and are fully collateralized by them, such as stocks or ETFs. Tokens are MiFID II-compliant financial products issued under an approved EU prospectus. Backed offers tokenization services to institutional clients, bridging the gap between TradFi and DeFi.
Backed’s native tokens are not offered, sold, or delivered within the United States, or for the account or benefit of U.S. Persons.
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About Sonic
Sonic is a high-speed layer-1 EVM-compatible blockchain that offers developers attractive incentives and powerful infrastructure, such as the ability for builders to earn up to 90% of the fees their apps generate on-chain. The chain achieves 10,000 TPS at one-second finality. Its innovative technology stack and focus on developer experience have made it a popular choice for decentralized applications.
About Chainlink
Chainlink is the standard for onchain finance, verifiable data, and cross-chain interoperability. Chainlink is unifying liquidity across global markets and has enabled over $17 trillion in transaction value across the blockchain economy. Major financial market infrastructures and institutions, such as Swift, Fidelity International, and ANZ Bank, as well as top DeFi protocols including Aave, GMX, and Lido, use Chainlink to power next-generation applications for banking, asset management, and other major sectors.
Learn more by visiting chain.link.
