Sygnum, a leading digital asset banking group, has partnered with Matter Labs, a software development company specializing in Ethereum scaling solutions, to tokenize $50 million of its treasury reserves. This strategic move represents the first step in Matter Labs’ long-term strategy to transition on-chain reserves with trusted institutional custodians.
The collaboration includes a $50 million investment by Sygnum on behalf of Matter Labs into Fidelity’s Institutional Liquidity Fund (ILF). Through the issuance of security tokens, Sygnum will provide on-chain representation for Fidelity’s $6.9 billion ILF units, ensuring a secure and transparent “proof of reserve” for Matter Labs’ treasury.
Leveraging the zkSync Layer 2 blockchain curated by Matter Labs improves security and transparency while laying the foundation for a fully tokenized ecosystem. This move is consistent with the trend toward tokenization of real-world assets (RWA), which will increase 74% to $2.5 billion in 2023.
Jürg Rimle, Country Head of Switzerland at Fidelity International, praises the partnership and highlights its role in bridging the gap between the digital asset economy and traditional finance. Fatmire Bekiri, Head of Tokenization at Sygnum, highlights the importance of leveraging blockchain and traditional finance expertise to bridge the cryptocurrency and TradFi sectors.
The tokenization process not only improves transparency, but also accelerates transaction settlement speed and reduces administrative burden. As global institutions such as Citi, JPMorgan, and Franklin Templeton explore tokenization technology, the collaboration between Sygnum and Matter Labs sets a precedent for future financial innovation.
Sygnum’s expertise in tokenizing traditional assets, combined with Matter Labs’ commitment to blockchain scalability, positions this partnership as a catalyst for reshaping financial markets. Marco Cora, SVP of Business and Operations at Matter Labs, highlights the institutional-grade security and transparency that zkSync provides, heralding a new era in financial infrastructure.
Sygnum’s role as a tokenization pioneer is further demonstrated by its previous plans, including the tokenization of its own assets in 2020. The bank continues to expand its services in the cryptocurrency brokerage space, with subsidiaries such as Sygnum Singapore obtaining major payment institution licenses.
The collaboration between Sygnum and Matter Labs highlights the transformative potential of blockchain technology to improve financial transparency and efficiency. As tokenization of real-world assets gains momentum, stakeholders across the financial landscape will benefit from improved accessibility and liquidity.