Chainlink Collaborates with DTCC and Major Banks for Accelerated Fund Tokenization, Shares up 7%

By: Isha Das

Chainlink, in collaboration with the Depository Trust and Clearing Corporation (DTCC) and several key banking institutions, including JPMorgan and BNY Mellon, has successfully conducted a pilot program aimed at accelerating fund tokenization.

This pilot project, known as 'Smart NAV', was designed to extend DTCC's Mutual Fund Profile Service I (MFPS I), a platform that transmits 'Price and Rate' data, aptly termed 'NAV data'. The initiative leveraged Chainlink's cross-chain interoperability and blockchain abstraction capabilities to examine the potential of on-chain price and rate data as a key facilitator for new initiatives, specifically in the area of mutual fund tokenization.

The pilot project demonstrated how structured data can be delivered on-chain, offering a gateway for embedding foundational data into multiple on-chain use cases. It also showed potentials for supporting portfolio applications and facilitating real-time, automated data dissemination. Ultimately, the pilot achieved notable milestones, including automated data routing via smart contracts, and prevention of future fragmentation through Chainlink's Cross-Chain Interoperability Protocol(CCIP).

Upon this announcement, the price of Chainlink's native cryptocurrency, LINK, has witnessed a 6.8% surge, surpassing the $14 mark.