Accelerating Fund Tokenization: DTCC Partners with Chainlink
In a groundbreaking collaboration, the Depository Trust and Clearing Corporation (DTCC) has teamed up with blockchain oracle Chainlink and esteemed banking institutions in the United States to execute a successful pilot project aimed at expediting the tokenization of funds. Through this partnership, the traditional asset management sector is witnessing the integration of blockchain technology, marking a significant milestone. Additionally, the price of Chainlink’s native cryptocurrency, LINK, has surged above $14, showcasing the positive impact of this initiative.
Key Players in the Pilot Project
The pilot, dubbed Smart NAV, was conceived by DTCC to explore the extension of its Mutual Fund Profile Service I (MFPS I), a standard platform transmitting “Price and Rate” data, also known as “NAV data.” This collaborative effort harnessed Chainlink’s cross-chain interoperability and blockchain abstraction capabilities to delve into the potential of on-chain price and rate data, particularly in the context of mutual fund tokenization.
- The pilot involved asset managers, service providers, and distributors such as American Century Investments, BNY Mellon, Edward Jones, Franklin Templeton, Invesco, JPMorgan, MFS Investment Management, Mid Atlantic Trust, and State Street.
Empowering Fund Tokenization Through On-Chain Data Delivery
The results of the pilot project have been promising, with DTCC, US banking institutions, and Chainlink demonstrating the delivery of structured data on-chain. This development enables the integration of foundational data into various on-chain applications, supporting brokerage portfolio applications and facilitating real-time data dissemination. Smart NAV also aims to enhance historical data access and streamline price and rate data relay through new data consumption interfaces.
- The pilot achieved several milestones, including validating user interfaces leveraging on-chain data, automating data routing through smart contracts, and preventing fragmentation using Chainlink’s Cross-Chain Interoperability Protocol.
Chainlink’s Role in Success and LINK’s Bullish Momentum
DTCC credits Chainlink for the success of Smart NAV, highlighting the role of Chainlink’s cross-chain interoperability in seamlessly transmitting data across multiple blockchains. This approach eliminates the need for individual connections to each blockchain, reducing costs and operational complexities while ensuring data accessibility and optimization. Concurrently, Chainlink’s native cryptocurrency, LINK, has experienced bullish momentum, surpassing the $14.88 mark with a 6.8% price increase post-announcement. Trading volume has also surged by 17% to $400 million, indicating strong investor interest in LINK.
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