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Matter Labs and Sygnum: Modernizing Treasury Management with Tokenization

Use Cases Tokenization

Matter Labs, the inventor and a core contributor to the ZKsync Era blockchain, collaborated with Sygnum Bank (Sygnum) and Fidelity International to bring their treasury reserves on-chain. By tokenizing USD 50 million of its treasury reserves in Fidelity International’s Institutional Liquidity Fund (ILF), Matter Labs and Sygnum demonstrated how blockchain can enhance transparency while unlocking new possibilities for treasury management.

Key Collaborators

  • Matter Labs: Implemented a hybrid treasury model, enabling seamless blockchain integration while gaining access to traditional securities.
  • Sygnum Bank: Delivered digital asset banking, tokenization expertise and facilitated regulatory-compliant issuance via its primary issuance platform, Desygnate. 
  • Fidelity International: Provided the Institutional Liquidity Fund as a trusted and secure investment vehicle.

Driving innovation in Treasury Management through Tokenization

Combining the expertise of three key parties, Sygnum made it possible for Matter Labs to invest their treasury reserves into a traditional security of choice and tokenize this investment on the ZKsync Era network. The traditional security was mirrored on the blockchain through the minting of a token. The token acts as a digital representation of the MMF units and carries a legal claim towards the bank, generating Proof-of-Reserves on chain.

Tokenizing treasury reserves combined the benefits of traditional finance with blockchain’s transparency and efficiency, achieving:

  • Real-time transparency: Blockchain-enabled Proof-of-Reserves provided real-time, verifiable insight into asset holdings, fostering trust with stakeholders.
  • Access to secure and stable returns: The ILF provided Matter Labs with a low-risk, high-quality investment aligned with their treasury goals, combining stability and liquidity of the money market fund.
  • Future-ready financial infrastructure: Tokenization established a scalable framework, enabling Matter Labs to seamlessly integrate additional on-chain financial tools and expand its blockchain-based treasury model.

Setting the stage for Future Finance

This collaboration paves the way for other investors seeking to improve transparency and efficiency, demonstrating blockchain’s potential to transform traditional finance. It not only enhanced transparency and operational efficiency but also set the foundation for a fully tokenized financial ecosystem. The project exemplifies the concept of Future Finance, where digital and traditional assets coexist to provide investors with a unique combination of security, transparency, and accessibility.

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