Chainlink is thrilled to reveal the outcomes of a groundbreaking Smart NAV industry pilot in collaboration with DTCC and the top 10 financial institutions worldwide. This pilot successfully transmitted crucial mutual fund data on the blockchain. DTCC, managing an astounding $2 quadrillion annually, stands as the largest post-trade market infrastructure platform globally. Responsible for clearing, settlement, asset servicing, data management, and trade reporting millions of security transactions daily, DTCC is a key player in the financial industry.
The recent Smart NAV industry pilot, conducted with DTCC and Chainlink, along with 10 major financial institutions, achieved the on-chain transmission of vital mutual fund data. The significance of this pilot in the realm of fund tokenization is detailed in the full report available at https://t.co/ob3K0s4g86.
The collaboration between Chainlink and DTCC in this pilot showcased the potential of making net asset value data accessible across various private and public blockchains. This integration not only ensures automated data dissemination and historical data access but also opens up opportunities for fund tokenization among users.
An important aspect highlighted in this pilot is Chainlink’s CCIP as an open blockchain interoperability framework, which aims to prevent fragmentation and facilitate innovative initiatives by establishing an abstraction layer between DTCC and blockchains. With the increasing popularity of mutual fund tokenization, DTCC recognized the potential of leveraging pricing and rate data on the blockchain for new ventures. The successful transmission of NAV data on any blockchain through the Smart NAV pilot builds upon DTCC’s Mutual Fund Profile Service I, the standard in transmitting “Price and Rate” or Net Asset Value data.
The collaboration between DTCC, Chainlink, and the 10 market participants in this pilot explored the feasibility and value of delivering a blockchain-based price solution, paving the way for new opportunities and experimentation in asset management. The experiment also demonstrated how structured on-chain data and standard processes can enable core data to be integrated into various on-chain use cases, such as tokenized funds and bulk consumer smart contracts with data for multiple funds, in real-time.
As the experiment showed, DTCC allows for regulated data usage, with Chainlink’s CCIP acting as the interoperability layer. The potential applications of this core function, as evidenced in this experiment, are vast, leading to enhanced efficiency in current operational processes.
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May 16, 2024
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