- DTCC has announced a new pilot that leverages Chainlink’s technology with ten of the financial industry’s leading players, including JPMorgan and BNY Mellon.
- Dubbed Smart NAV, it delivers price and rate data on any decentralized ledger, expanding on DTCC’s existing mutual fund service, which serves hundreds of leading financial firms.
America’s premier post-trade services company has announced a new pilot that leverages Chainlink technology to offer real-time financial data to hundreds of market participants.
The Depository Trust and Clearing Corporation (DTCC) announced the new initiative on Thursday. Dubbed Smart NAV, it seeks to offer on-chain price and rate data, expanding on DTCC’s existing Mutual Fund Profile Service I, the industry standard for price and rate data.
DTCC is a New Jersey-based company that provides settlement, clearing and trade reporting services to hundreds of firms. It’s the world’s highest financial value processor, with over $2 quadrillion processed annually.
With Smart NAV, DTCC and ten other major financial institutions explored how to avail net asset value (NAV) data across any public or private blockchain. The participants included BNY Mellon, JPMorgan, Franklin Templeton, State Street, MFS Investment Management and Edward Jones.
In the pilot, DTCC collects and transforms data from market participants operating funds. It then disseminates this data to a Chainlink-based platform, which transmits it to any blockchain network, including the existing DTCC platform built on Ethereum, as illustrated below.
According to Chainlink Labs, this data arrangement “enables automated data dissemination and historical data access, which unlocks a multitude of use cases around fund tokenization.” DTCC added that the pilot also allowed the participants to experiment with various asset management tweaks.
DTCC and Chainlink Unveil New Use Cases in Finance
The pilot focused on delivering structured on-chain data. It found that the participants could embed foundation data into several on-chain use cases, including bulk consumer smart contracts that hold data for multiple funds and tokenized funds, an area that has received increasing interest from financial companies and regulators alike, as Crypto News Flash has reported.
DTCC explained:
This capability can support future industry exploration and can power numerous downstream use cases as well, such as brokerage portfolio applications. Additional benefits include real-time, more automated data dissemination and built-in access to historical data.
The pilot relied on Chainlink’s Cross-Chain Interoperability Protocol (CCIP). This protocol provides a unified interface through which any dApp can send messages and transfer tokens cross-chain. As CNF reported, CCIP has expanded to support nine blockchains, from Polygon and Ethereum to BNB Chain and Optimism.
On the importance of Chainlink and its CCIP, DTCC stated:
The Smart NAV pilot demonstrated CCIP’s ability to serve as an abstraction layer between DTCC and the potentially infinite number of blockchains we may need to integrate to at some point in the future. Rather than building bespoke connections, we were able to validate an approach where DTCC systems integrate to a single CCIP endpoint which can then relay the data to virtually any destination blockchain.
Chainlink’s LINK trades at $16.58, surging by 19.4% since the news broke out yesterday, the highest it has traded in six weeks. Its trading volume has skyrocketed 250% to hit $1.2 billion, its highest since February.
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