Chainlink is thrilled to announce the successful outcomes of an innovative pilot project in the Smart NAV industry. This pilot was conducted in collaboration with DTCC and ten of the world’s largest financial institutions. The main achievement of this pilot was the successful delivery of crucial mutual fund data on the blockchain. DTCC, which manages an astounding $2 quadrillion annually, is the largest post-trade market infrastructure platform in the world. It is responsible for clearing, settlement, asset servicing, data management, and trade reporting for millions of security transactions on a daily basis.
We are excited to share the results of this groundbreaking Smart NAV industry pilot, which involved Chainlink, DTCC, and ten of the largest financial institutions globally. Together, we were able to deliver key mutual fund data on the blockchain.
To learn more about this pilot and its implications for fund tokenization, please refer to the full report at the following link: [insert link].
The pilot with DTCC demonstrated how Chainlink and DTCC can make net asset value data accessible on almost any private or public blockchain. This integration also ensures automated data dissemination and historical data access, which opens up new opportunities for fund tokenization among users.
One of the key insights from this pilot is the importance of Chainlink’s CCIP as an open blockchain interoperability framework. By providing an abstraction layer between DTCC and blockchains, it prevents future fragmentation and enables novel initiatives.
As mutual fund tokenization gained popularity, DTCC recognized the potential of leveraging pricing and rate data on the blockchain for new initiatives. The net asset value data can now be accessed on any blockchain. The Smart NAV pilot was an extension of DTCC’s Mutual Fund Profile Service I, which is the industry standard for transmitting “Price and Rate” or Net Asset Value data.
DTCC, Chainlink, and ten market participants collaborated to assess the feasibility and value of delivering a blockchain-based price solution. This collaboration has created new opportunities and enabled experimentation in asset management.
The pilot demonstrated that structured data on the blockchain, along with standard roles and processes, provide a means to incorporate core data into a wide range of on-chain use cases. These use cases include tokenized funds and bulk consumer smart contracts that contain data for multiple funds. The real-time capability of this integration allows for further exploration and supports various downstream use cases within the industry.
Lastly, DTCC ensures that data can be utilized and regulated, with Chainlink’s CCIP serving as the interoperability layer. The potential use cases for this core function, as demonstrated in this experiment, are virtually limitless. This will result in more efficient and improved operational processes in the current financial landscape.
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