Chainlink establishes partnerships to dive into the RWA industry

Chainlink Labs, the company behind the oracle protocol that runs on the Ethereum network, has partnered with Fidelity International, a Bermuda-based investment giant, and Swiss-based cryptocurrency-focused bank Sygnum.

The aim of the association is Driving the adoption of real-world assets (RWA) tokenized.

RWA refers to the representation of real physical or financial assets in the form of tokens on a cryptocurrency network. This technology allows traditional assets, such as stocks, bonds or real estate, to be traded on the cryptocurrency market, as CriptoNoticias has explained.

In the case of Chainlink Labs, Fidelity and Sygnum seek to bridge the gap between traditional finance and cryptocurrencies by incorporating net asset value data (NAV), which is the total value of a fund, says a statement published yesterday, June 3.

The alliance focuses on the units of Fidelity International’s Institutional Liquidity Fund, which It is worth 6.9 billion dollarsWithin this fund, there are $50 million of Matter Labs’ reserves that have been tokenized and issued on Ethereum’s layer 2, zkSync.

This Ethereum network is part of the Chainlink SCALE program. This program allows layer 1 and layer 2 networks to “accelerate smart contract innovation in their native ecosystems by covering the operational costs (e.g., gas fees per transaction) of Chainlink oracle networks for a period of time,” Chainlink’s website states.

This initiative will allow the information on the value of investment funds is transparent and accessible to all users, seeking to make it more reliable and secure.

Chainlink plays a crucial role in this process by providing oracles, trusted data sources that connect the real world to cryptocurrency networks. Chainlink oracles ensure that NAV data is kept up to date. are accurate and updated in real time.

What is Chainlink?

Chainlink is a protocol that operates as a communication platform between networks, mainly providing oracle services (i.e., incorporating real-world information).

One of Chainlink’s goals is to create interoperability bridges that allow for secure communication and exchange of assets. It has its own API (application programming interface) that makes it easy for developers to implement bridges in their decentralized applications (dApps) without much effort.

For its part, the price of LINK, the token of the Chainlink protocol, has not benefited from this announcementThis is reflected in the following TradingView chart.

The asset is priced at $12.9. Over the past 24 hours, its price has dropped by 5%, while it has been declining by 26% in the last month.