2024-5-17 10:34 |
The Depository Trust and Clearing Corporation (DTCC), the largest securities settlement system globally, has concluded a pilot project with blockchain oracle Chainlink. Several major U.S. financial institutions also participated in the program.
Named the Smart NAV project, this initiative aimed to create a standardized method for providing net asset value (NAV) data of funds across various blockchains. It used Chainlink’s Cross-Chain Interoperability Protocol (CCIP).
A report detailing this pilot was published by DTCC on May 16.
Blockchain bolsters the traditional systemThe financial institutions involved in the pilot included American Century Investments, BNY Mellon, Edward Jones, Franklin Templeton, Invesco, JPMorgan, MFS Investment Management, Mid Atlantic Trust, State Street, and U.S. Bank.
The goal was to deliver structured data on-chain and establish standardized roles and processes. According to the report, this approach allowed foundational data to be embedded into multiple on-chain use cases, such as tokenized funds and “bulk consumer” smart contracts.
“The pilot demonstrated that by delivering structured data on-chain and creating standard roles and processes, foundational data could be embedded into a multitude of on-chain use cases,” the report noted.
The DTCC report indicated that the pilot achieved better automated data management with minimal disruption to existing market practices for traditional financial institutions. It also allowed clients to retrieve historical data without manual record-keeping and provided broader API solutions for price data.
The findings suggest that these capabilities could support future industry exploration and various downstream use cases, including brokerage applications and more automated data dissemination.
Chainlink’s native token, LINK, saw a significant price increase after the DTCC report was published. The price rose by over 12.5%, according to CoinGecko. Over the past 12 months, LINK has gained more than 130%.
Tokenization is the new buzzwordThe DTCC report comes amid a growing interest in the tokenization of real-world assets (RWA) by major traditional financial institutions.
Tokenization involves converting physical assets, like bonds and funds, into digital tokens on a blockchain. Compared to traditional systems, this offers enhanced efficiency, faster settlements, and greater transparency.
Notable players who dipped their toes in the sector include BlackRock.
The asset manager recently launched a tokenized money market fund called BUIDL on the Ethereum network on March 19. The fund enables investors to buy tokens representing shares in the fund, which invests in assets like U.S. Treasury bills. The BUIDL fund operates as an ERC-20 token on the Ethereum blockchain, offering a digitized investment option.
The post Depository Trust & Clearing Corporation completes fund data tokenization pilot with Chainlink appeared first on Invezz
Similar to Notcoin - Blum - Airdrops In 2024
ChainLink (LINK) на Currencies.ru
|
