Australian investment firm Fortlake Asset Management has announced plans to venture into the digital asset space by tokenizing its Sigma Opportunities Fund through partnerships with three crypto-focused entities: Chainlink, Backed, and Sonic formerly known as Fantom. The move outlined in the company’s press release is the next big step toward the blending of conventional asset management and decentralized finance or DeFi.
Chainlink, an innovative blockchain data firm, will also be involved in the confirmation of the collateral of the funds and supervision of assets under management (AUM). It will also create possibilities of cross-chain liquidity to boost the utilization of the funds. At the same time, tokenisation firm Backed will mint the fund tokens, relying on Sonic, an L1 EVM-compatible blockchain to effect the process.
Chainlink Drives Decentralization in Fortlake’s Sigma Opportunities Fund
Fortlake has planned a tokenization strategy to leverage a new wave within the DeFi market, such as lending and margin trading. Fortlake founder and Chief Information Officer, Christian Baylis, said the decision has been revolutionary for opening up the company to digital asset investors.
Working with Backed, Sonic, and Chainlink to bring tokenization to the Sigma Opportunities Fund is a big step in how we offer exposure to our fund to the burgeoning market of digital asset investors, he said. He said that this move would decentralize the fund, making it easier to access and potentially opening a new chapter in fund raising in asset management..
The collaboration is also a major achievement for Sonic as it consolidates the company’s stay in the DeFi space. Sam Harcourt, business development lead for Sonic, expanded on the bigger picture of the effort. The project highlights Sonic’s ability to offer support for new-generation digital cash assets, given the strong network in place. Sam Harcourt argued:
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This is one of the first steps for Sonic in its pathway to tokenizing financial assets across the globe.
Sigma Opportunities Fund: Tokenizing $124M to Embrace Blockchain Innovation
The Sigma Opportunities Fund has net Assets of approximately AUD $124 million (USD $80 million) and is the latest traditional asset to get the process of tokenization and integration of assets with blockchain technology added. This change echoes a 2023 Bank of America research report that expects the tokenization of conventional assets to reach more than $16 trillion in the next five to fifteen years, transforming the financial landscape.
Fortlake’s plan evolves from a broader-looking picture of companies in the financial sector. BlackRock, the world’s biggest fund manager, debuted a tokenized fund called the BlackRock USD Institutional Digital Liquidity Fund, an Ethereum-based fund, in March. Since earing a 46% total returns rate this year, BUIDL raised its market capitalization to $550 million and spread across various blockchains such as Avalanche and Aptos, thus making it the world’s largest tokenized fund.
The long-term investments company Fortlake has explained its reasons for tokenizing through Sigma Opportunities Fund and taking the bull by the horns to adopt blockchain’s efficiencies, and target young investors. Apart from this it is more diverse in its approach towards the markets and at the same time it helps EFA attests its future readiness in a constantly changing world of financial management.
Conclusion
The announcement made by Fortlake regarding the tokenization of its Sigma Opportunities Fund is evidentiary of the evolution in linking the conventional financial market with decentralized finance. To achieve greater fund availability, to adopt the best practices of blockchain and digital technologies, and to become leaders in the new processes in the field of investing in digital assets, the firm is planning to integrate blockchain and work with Chainlink, Backed, and Sonic.
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