Three of the leading crypto companies operating at the intersection of DeFi, RWAs, and AI have announced a merger to form a single entity. SingularityDAO, Cogito Finance, and SelfKey are becoming Singularity Finance, an apposite name for a singular entity dedicated to accelerating adoption of tokenized real-world assets (RWAs) and AI.

The three companies are no strangers, having already collaborated closely on integrating their respective technologies. The merger formalizes a strategy that has already been set in motion and will allow each entity to leverage its tech and experience to make Singularity Finance a Layer 2 that can achieve real-world adoption.

AI Meets RWA

SingularityDAO operates a decentralized Portfolio Management Protocol that utilizes AI to enhance the multi-asset vaults, analytics, and risk management tools it offers. It recently integrated tokenized RWAs issued by Cogito Finance, the second partner in the merger. Cogito’s tokenized US treasury bills are available to SingularityDAO users, and will be complemented by additional Cogito products with the launch of Singularity Finance.

The final company that makes up the triumvirate, SelfKey, operates a well-established blockchain-based identity system. It’s one of the leaders in the decentralized ID space and its technology will be used in implementing the user authentication required for trading RWAs on Singularity Finance’s L2.

More than mere buzzwords, AI and RWA have emerged as major sub-sectors of DeFi, expanding the use cases that are available onchain and, in the case of AI, enhancing existing ones. AI assistants, for example, are increasingly being used to help DeFi users make smarter trading decisions and to enhance risk management. AI agents – autonomous bots – are also now routinely used onchain.

By combining their teams and talents to create Singularity Finance, SingularityDAO, Cogito Finance, and SelfKey, they are hoping to corner the market for AI-powered RWAs and DeFi. Cornerstones of Singularity Finance’s strategy include tokenizing AI assets and RWAs using Cogito’s tokenization technology; expanding upon the AI-powered financial services SingularityDAO currently offers; and creating new financial vaults and yield strategies that will attract DeFi users.

One Chain, One Token

One of the complications when crypto projects merge is the matter of what happens to their existing tokens, but the trio that form Singularity Finance have thought of that. The SDAO, CGV, and KEY tokens will be converted into a new token, SFI, which will become the network’s governance token. Initially, the new token will be issued on Ethereum and BNB Chain. The conversion rate for holders of the existing tokens will vary to account for differences in metrics such as the circulating supply of each asset.

The announcement of Singularity Finance’s formation has been accompanied by a whitepaper that expounds upon the concept of “AI-Fi” and makes the case for it becoming a core component of decentralized finance. Just as most crypto projects feature a token that can be traded onchain, the same is rapidly occurring with web3 AI companies.

If Singularity’s vision comes to pass, there’s scope for the fledgling AI-Fi economy to take root on its Layer 2 which will possess the primitives required for such assets to flourish: multi-asset tokenization framework, decentralized ID, RWA support, AI assets and assistants, and a range of yield-generating vaults. The raw ingredients are there. Singularity Finance is now intent on perfecting the recipe to create a rich brew of AI and RWAs delivered on scalable blockchain infrastructure. 

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