Key Takeaways:
- Chainlink is powering a new tokenized fund in the amount of $100 million put forward by Amundi and Spiko
- SAFO fund proposes 24/7 transfers, automated NAV reporting, and access to multi-currency for use
- The product, which is developed according to EU UCITS, focuses on institutional cash management and the blockchain efficiency thereof
The biggest transformation towards tokenized finance is a direction where traditional asset managers continue to enhance their blockchain overlay. Moving on-chain with actual money is becoming a move by one of the largest participants in Europe.
Amundi and Spiko Launch Tokenized Fund with Chainlink Infrastructure
The Spiko Amundi Overnight Swap Fund (SAFO) has also been launched with Amundi managing more than €2.3 trillion together with Spiko. This is a tokenized adapted mutual fund that allows institutional liquidity.
The fund launched with an initial capital of €100 million committed money, which is an indicator of good initial demand. It is a tokenized sub-fund in a regulated French SICAV structure which is subject to the new EU UCITS standards.
Chainlink facilitates the process of having automated net asset value (NAV) reporting that is reported on-chain. This erases delays that are prevalent in the conventional reporting of funds and increases the level of transparency among investors.
SAFO is first implemented on Ethereum and Stellar but can be extended to other networks when they are in higher demand.
Read More: Chainlink Powers CBTC on Canton, Unlocking Verified 1:1 BTC Collateral
24/7 Access and Real-Time Settlement Redefine Fund Operations
The fund presents functionalities that the conventional financial products find it hard to rival. Share capitalists are able to subscribe to and redeem shares at any time and not only at the time when the market is open. Key advantages include:
- Near-instant settlement instead of T+1 or T+2 delays
- Real-time visibility into shareholder records
- Cross-border transfers without intermediaries
- Access starting from just 1 unit in EUR, USD, GBP, or CHF
How Chainlink Enhances Transparency and Automation
Chainlink verifies that NAV data is properly published on-chain, eliminating the necessity to use manual reporting. This enhances accuracy and reliability particularly to institutional users dealing with high volumes of capital. Its cross-chain interoperability also enables the fund to work in the various blockchain ecosystems and preserve the same data integrity.
Read More: VOOI Goes Cross-Chain via Chainlink CCIP, Unlocking Native Transfers Across 3 Major Blockchains
Institutional Demand Drives Tokenization Forward
The SAFO structure employs total-return swap utilizing fully collateralized swaps with large banks to give the fixed yields whilst maintaining the liquidity at overnight. This renders it appropriate to manage treasury and to optimize collaturals.
In the case of institutions, the model represents a combination of the traditional reliability of finance and the flexibility of blockchain. It can be integrated with automated systems using APIs and smart contracts, thus permitting use cases of programmable finance.
The executives of the two companies emphasized the fact that tokenization has ceased to be experimental. Rather, it is turning into an efficient method of enhancing efficiency, transparency, and access in world finance.
Source: https://www.cryptoninjas.net/news/chainlink-powers-100m-tokenized-fund-as-amundi-enters-on-chain-finance-race/
