In a major step toward bringing traditional financial assets onchain, Backed, a pioneer in asset tokenization solutions, Sonic (fka Fantom), an EVM L1 blockchain that provides developers with alluring incentives and robust infrastructure, and Chainlink, the industry standard for onchain finance, have announced that they are collaborating with Fortlake Asset Management to tokenize their Sigma Opportunities Fund.
Backed is tokenizing the fund by generating permissionless tokens that are 1 to 1 collateralized by fund units, and the price of these tokens is linked to the Net Asset Value (NAV) in real time. This indicates that tokens are usable inside the Sonic ecosystem and are DeFi ready. Chainlink CCIP will provide smooth cross-chain liquidity and operations, Chainlink Proof of Reserves will assist in confirming collateralization and AUM, and Chainlink SmartData will provide NAV data of the underlying fund shares onchain.
Recently, Fortlake was chosen as Australia’s Fixed Income Manager of the Year. Using market distortions to generate a robust return, its Sigma Opportunities Fund is an actively managed global fixed-income investment strategy that aims to outperform the fed funds rate by 7–10%. The fund’s active fixed-income assets have generated a 10% return over the last 12 months.
The high-speed layer-1 EVM-compatible blockchain Sonic, previously known as Fantom, provides developers with strong infrastructure and alluring incentives. 10,000 TPS is attained by the chain at one-second finality. It is a well-liked option for decentralized apps, primarily DeFi protocols, because to its creative consensus method and emphasis on developer experience. Sonic is the perfect platform for tokenizing real-world assets since it can manage a large number of transactions with little latency.
Adam Levi at Backed said:
“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. This partnership reflects our commitment to transforming how financial assets are managed and traded.”
Colin Cunningham, Head of Tokenization & Alliances at Chainlink Labs stated:
“We’re excited to work with Backed and Fortlake on the first RWAs tokenized on Sonic. As the standard for onchain finance, Chainlink will help drive the adoption, utility, and liquidity of Fortlake’s tokenized fund.”
Sam Harcourt, Business Development Lead at Sonic said:
“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.”
Being the first fund to use Backed’s Tokenization-as-a-Service (TaaS) platform, the tokenization of Fortlake’s Sigma Fund represents a significant milestone. This accomplishment demonstrates Backed’s foray into private tokenization and its ongoing provision of comparable tokenization solutions to other funds and financial organizations. By further exploring fresh prospects, Backed will expand its offerings and provide the blockchain ecosystem even more freedom and access to tokenized assets.
Christian Baylis Fortlake Founder and CIO stated:
“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. We believe this collaboration marks the beginning of a new era in traditional asset management fund raising.”
The fund’s tokenization opens up new possibilities in decentralized finance, including lending market integrations, usage as collateral for margin trading, or as a high-yield stablecoin savings solution. Other asset managers are beginning to swiftly explore this space and the potential it presents, as BlackRock has recently entered the tokenization race. In the next five to fifteen years, asset tokenization may reach $16 trillion, according to The Bank of America. Blockchain-based tokenization has shown significant cost reductions in tokenization initiatives conducted by organizations like JP Morgan and the Hong Kong Monetary Authority.
