The Depository Trust & Clearing Corporation (DTCC), one of the largest settlement systems globally, has partnered with leading oracle provider Chainlink and 10 major financial institutions, including JPMorgan, to successfully complete a pilot project called Smart NAV. The goal of this project is to promote the tokenization of traditional financial funds.
The Smart NAV pilot project expands DTCC’s Mutual Fund Profile Service I (MFPS I) onto the blockchain. MFPS I is a service provided by DTCC that specializes in transmitting price and interest rate data for mutual funds. It is an industry standard service aimed at facilitating effective management and communication of mutual fund data.
According to the DTCC announcement, the core of Smart NAV is to provide a functionality that makes trusted and verifiable data available on almost any blockchain network to support its use in business processes. DTCC acts not only as the data provider but also manages the on-chain solution for storing the data, while Chainlink’s Cross-Chain Interoperability Protocol (CCIP) ensures the cross-chain transmission of NAV data.
The pilot report highlights several achievements of the Smart NAV pilot program, including the establishment of a model for user interfaces and applications that utilize blockchain data, the implementation of dynamic data management throughout the asset lifecycle through smart contracts, the prevention of future fragmentation through the use of Chainlink’s CCIP, and the simplification of downstream data delivery for price and interest rate data.
Based on these findings, DTCC believes there is an opportunity to expand the scope of the pilot and explore how the technologies used in the pilot can support more application scenarios and be extended to more blockchains.
The 10 participating US financial institutions in the pilot program include American Century Investments, The Bank of New York Mellon, Edward Jones, Franklin Templeton, Invesco, JPMorgan, MFS Investment Management, MidAtlantic Trust Company, State Street Bank, and Union Bank.
The news of this partnership has significantly boosted the price of Chainlink’s native token, $LINK, with a rise of over 20% in the past 24 hours according to CoinGecko data. Additionally, sentiment analysis platform Santiment reports a 4.6% increase in the number of whale users holding over 100,000 $LINK tokens, reaching a total of 564 users in just 5 weeks.
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