DTCC Completes Chainlink Fund Data Token Pilot with US Banks
The world's largest settlement system, Depository Trust and Clearing Corporation (DTCC) and blockchain oracle Chainlink have completed a pilot program with several major banking organizations in the United States that aims to add a traditional financial fund token.
The Smart NAV Pilot Program was conducted to standardize the method of presenting net asset value (NAV) funds in the blockchain using Chainlink's Cross-Chain Interoperability Protocol (CCIP), according to a May 16 DTCC report.
“By providing structured data on-chain and creating standard roles and processes, the pilot has proven that basic data can be incorporated into multiple on-chain use cases such as tokenized funds and ‘bulk consumer' smart contracts. Capture data for multiple currencies,” he wrote.
These capabilities could support future industry research, he said, and enable “many downstream use cases” such as brokerage applications, more automated data distribution and easy access to financial historical data.
The pilot helped establish better automated data management, limited impact on market operations by traditional financial institutions, allowed customers to retrieve historical data without manual record keeping, and provided a wider range of API solutions for price data, according to the DTCC report.
US banking firms participating in the pilot include American Century Investments, BNY Mellon, Edward Jones, Franklin Templeton, Invesco, JPMorgan, MFS Investment Management, Mid-Atlantic Trust, State Street and US Bank.
Related: Deutsche Bank Joins Singapore Asset Token Project
Chainlink's native token Chainlink (LINK) surged 12.5% after the DTCC report, CoinGecko reported.
LINK has gained more than 130% in the last 12 months in the broader crypto market.
DTCC's report comes as a real-world asset token of interest from major traditional financial institutions.
On March 19, BlackRock will launch a US dollar native product called BUIDL on the Ethereum network.
The fund allows investors to buy tokens that represent shares in the fund, which invests in assets such as U.S. Treasury bills. It is called a “digital liquid fund” because the money is digitized on the Ethereum blockchain and works as an ERC-20 token called BUIDL.
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