The Depository Trust and Clearing Corporation (DTCC), the world's largest settlement and clearing system, and Chainlink, an oracle blockchain platform, recently completed a fund data tokenization pilot with several U.S. banks
An innovative pilot project
The pilot project, called Smart NAV Pilot, was conducted to standardize a method of delivering fund net worth (NAV) data across blockchains, using Chainlink's cross-chain interoperability protocol (CCIP). This technology enables structured data to be delivered online, and creates standard roles and processes for integrating fund data into smart contracts.
Participating banks
U.S. banks participating in the pilot project include American Century Investments, BNY Mellon, Edward Jones, Franklin Templeton, Invesco, JPMorgan, MFS Investment Management, Mid Atlantic Trust, State Street and U.S. Bank. This diversity of financial industry players underlines the widespread interest in fund data tokenization and its potential to transform traditional industry practices.
Project benefits
The pilot project showed that tokenization of fund data could be a solution for improving the efficiency and transparency of financial transactions. Tokenized fund data could be used to create more complex smart contracts and more automated brokerage applications.
Market impact
The announcement of the pilot project has had a significant impact on the cryptocurrency market. The price of Chainlink (LINK) rose by 12.5% after the announcement, according to CoinGecko. LINK has also seen a 130% increase over the past 12 months, in line with the overall rise in the cryptocurrency market.
