Why This Aussie Asset Manager is Tokenizing its Fixed Income Fund - Decrypt
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Why This Aussie Asset Manager is Tokenizing its Fixed Income Fund
The collaborations seek to simplify asset management by bringing traditional financial assets on-chain and expanding access to DeFi. Backed, Sonic (formerly Fantom) and Chainlink have teamed up with Australian hedge fund Fortlake Asse
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Summary
- 🌏 **Tokenization Initiative**: Australian hedge fund Fortlake Asset Management is partnering with Backed, Sonic, and Chainlink to tokenize its Sigma Opportunities Fund, transforming traditional financial assets into digital tokens on a blockchain.
- đź’° **Investment Strategy**: The fund targets high yields of 7-10% and has over $1 billion in assets under management, aiming to expand access to decentralized finance (DeFi) for digital asset investors.
- 🔗 **Blockchain Integration**: Tokenization will utilize Backed’s Tokenization-as-a-Service platform, with tokens backed 1:1 by fund units, ensuring their value aligns with the fund's real-time Net Asset Value (NAV).
- ⚡ **Technological Advancements**: The tokens will be integrated into the Sonic blockchain, capable of processing 10,000 transactions per second, while Chainlink’s technology ensures accurate value recording and asset security.
- 🚀 **Future of Tokenization**: The partnership reflects a growing trend in blockchain solutions for asset management, with predictions of the tokenization sector reaching $16 trillion in value within 15 years, as more institutions explore this innovative approach.
Top Highlights
- Why This Aussie Asset Manager is Tokenizing its Fixed Income Fund The collaborations seek to simplify asset management by bringing traditional financial assets on-chain and expanding access to DeFi.
- Backed, Sonic (formerly Fantom) and Chainlink have teamed up with Australian hedge fund Fortlake Asset Management to turn its Sigma Opportunities Fund into a tokenized investment. Managed by Fortlake—recently named Fixed Income Manager of the Year in Australia— the fund’s units will be transformed into digital tokens, a process called tokenization...
- “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,” Christian Baylis, founder and CIO of Fortlake said in a statement. “We believe this collaboration marks the beginning of a new era in tradi...
- As a global fixed-income investment strategy targeting high yield, the fund targets returns between 7 and 10%, according to Fortlake’s own product disclosure statement. Fortlake has over $1 billion in assets under management across all of its funds.
- How it works Tokenization will occur using Backed’s Tokenization-as-a-Service (TaaS) platform. Those tokens will be backed 1:1 by units, ensuring their value corresponds to the real-time Net Asset Value (NAV) of the fund—essentially the fund’s worth per share. “Tokenizing the Fortlake Sigma Fund is a major step forward in the blockchain landscape,...
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