Sygnum bank to tokenize $50M of Matter Labs’ reserves for transparency. Image showing a hand holding a digital token with the words
Sygnum bank to tokenize $50M of Matter Labs’ reserves for transparency

The Sygnum Group Invests $50 Million in Fidelity Institutional Liquidity Fund for Web 3.0 Strategy

The Swiss-based Sygnum Group, a global digital asset banking group, has announced its plan to invest $50 million in the Fidelity Institutional Liquidity Fund on behalf of its client Matter Labs. This investment is a crucial step in Matter Labs’ long-term strategy to move all of its treasury reserves onto the blockchain with institutional custodians.

In order to achieve transparency for Matter Labs’ proof of reserves, the funds will be tokenized onto the Ethereum-based zkSync layer-2 blockchain, which is curated by Matter Labs. These tokenized funds will represent a portion of Matter Labs’ holdings in the Fidelity Institutional Liquidity Fund, an open-ended $6.3-billion umbrella for money-market funds domiciled in Ireland.

The tokenization of traditional securities by Sygnum marks a significant milestone, with the company’s co-founder and group CEO Mathias Imbach commenting on the deal at the ongoing Digital Asset Summit 2024 in London. He stated, “Moving USD 50m of our treasury reserves onto the zkSync blockchain showcases its institutional-grade security as well as our commitment to transparency.”

This move towards web 3.0 is a first for Sygnum, and it highlights the increasing importance of this emerging technology. With the rise of web 3.0 and its integration of blockchain and the internet of things, businesses will need to adapt and invest in this new paradigm. The metaverse, a virtual world created by web 3.0, is also gaining traction and is set to have a significant impact on the way we do business.

Investing in web 3.0 is a wise decision for companies looking to stay ahead of the curve and embrace the future of technology. By understanding the potential of web 3.0 and taking steps to invest in it, businesses can position themselves for success in the rapidly evolving digital landscape. C’est quoi le web 3.0? It’s the future, and it’s time to start investing in it.

The Evolution of Web 3.0 and its Impact on Businesses

The concept of Web 3.0, also known as the “internet of things”, has been gaining traction in recent years as a solution to the scalability issues faced by Ethereum DApps. In April 2023, the zkSync blockchain officially launched its public mainnet after securing $200 million in Series C funding in November 2022. This platform saw a peak of $870 million in total value locked (TVL) on March 10 and currently has a TVL of $715 million as reported by L2BEAT on March 19.

Sygnum, a bank founded in 2020, made waves by becoming the first bank to tokenize its own assets. The following year, they began offering clients access to cryptocurrency staking, starting with Internet Computer and Tezos, and later adding Ether in 2021 and Cardano in 2022.

In October 2023, Sygnum’s Singapore subsidiary obtained a Major Payment Institution license, allowing them to provide crypto brokerage services to accredited investors and institutions. It should be noted that Sygnum does not cater to clients from the United States.

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