It shut down the world’s largest settlement system, the Depository Trust and Clearing Corporation.
The world’s largest settlement system, the Depository Trust and Clearing Corporation (DTCC), and blockchain oracle Chainlink have completed a pilot program with several major banking companies in the United States aimed at increasing the tokenization of traditional funds.
The Smart NAV pilot was conducted to standardize how fund net asset value (NAV) data is provided across blockchains, using Chainlink’s Cross-Chain Interoperability Protocol (CCIP), according to a report of the DTCC dated May 16.
“The pilot revealed that by introducing structured data on-chain and creating standard roles and processes, the underlying data can be integrated into many on-chain use cases, such as tokenized funds and “bulk consumer” smart contracts, contracts in which we hold data for multiple funds,” she wrote.
She said these capabilities could support future industry exploration and power “many end-use cases” such as brokerage applications, more automated data publishing and facilitating access to historical data for funds.
The pilot helped create better automated data management, limited impact on existing market practices of traditional financial institutions, enabled customers to retrieve historical data without manual recordkeeping, and provided broader API solutions for price data, notes the DTCC report.
US banking companies that participated in the pilot include American Century Investments, BNY Mellon, Edward Jones, Franklin Templeton, Invesco, JPMorgan, MFS Investment Management, Mid-Atlantic Trust, State Street and US Bank.
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Chainlink’s native token (LINK) rose 12.5% following the DTCC report, according to CoinGecko.
LINK has gained more than 130% over the past 12 months amid a broader recovery in the cryptocurrency market.
The DTCC report comes with broader enthusiasm for tokenizing real-world assets than large traditional financial institutions.
On March 19, BlackRock launched a tokenized money market fund (MMF) called BUIDL on the Ethereum network that offers returns in native US dollars.
The fund allows investors to purchase tokens that represent shares of the fund, which invests in assets such as U.S. Treasuries. The fund is called a “digital liquidity fund” because it is digitized on the Ethereum blockchain and functions as an ERC-20 token called BUIDL.
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