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DTCC Smart NAV Pilot Utilizes Chainlink for Blockchain-Based Mutual Fund Data

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bitcoin.com
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1 year ago
AI summarizes in 5 seconds.

DTCC’s Smart NAV pilot claims to mark a significant step in the integration of blockchain technology within financial services. By utilizing Chainlink‘s Cross-Chain Interoperability Protocol (CCIP), DTCC was able to transform and transmit price and rate data across multiple blockchain networks. This chain-agnostic approach allows for the seamless integration of mutual fund data into blockchain-based applications.

The report highlights how it enables tokenized funds and smart contracts to access real-time and historical data without manual recordkeeping. The pilot engaged several industry participants, including American Century Investments, BNY Mellon, and JPMorgan, highlighting broad industry interest and collaboration among financial giants.

DTCC Smart NAV Pilot Utilizes Chainlink for Blockchain-Based Mutual Fund Data

The pilot demonstrated several key capabilities. It validated a model for using onchain data in user interfaces and applications, automated data routing through smart contracts, and promoted a standardized approach to prevent future fragmentation. Chainlink’s CCIP played a crucial role in these advancements, offering a solution for cross-chain data transmission.

“Major market infrastructures and institutional banks such as Swift, ANZ, and many others have successfully used Chainlink to demonstrate that financial institutions can use existing infrastructure and messaging standards to interact with tokenized assets across blockchains through CCIP’s blockchain abstraction layer,” the DTCC study discloses.

DTCC researchers noted that Smart NAV pilot participants reported benefits such as reduced manual processes and the potential for new, blockchain-enabled financial products. Following the publishing of the pilot report, the value of chainlink (LINK), the ecosystem’s native token, surged. Over the past week, LINK has risen 21% against the U.S. dollar, spiking significantly after the report was published on May 16.

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