Chainlink News – DTCC and Chainlink Conclude Pilot Program to Tokenize Traditional Finance Funds with Major U.S. Banks

Chainlink News – DTCC and Chainlink Conclude Pilot Program to Tokenize Traditional Finance Funds with Major U.S. Banks

Chainlink News – The Depository Trust and Clearing Corporation (DTCC), the world’s largest settlement system, and blockchain oracle Chainlink have concluded a pilot program with several prominent U.S. banking firms to enhance the tokenization of traditional finance funds.

The Smart NAV Pilot program aimed to standardize the provision of net asset value (NAV) data of funds across blockchains using Chainlink’s Cross-Chain Interoperability Protocol (CCIP), according to a DTCC report published on May 16.

“The pilot demonstrated that by delivering structured data on-chain and establishing standardized roles and processes, foundational data could be embedded into various on-chain use cases, such as tokenized funds and ‘bulk consumer’ smart contracts, which are contracts that store data for multiple funds,” the report stated.

These capabilities could facilitate future industry exploration and support “numerous downstream use cases” such as brokerage applications, more automated data dissemination, and easier access to historical data for funds, the report explained.

The pilot also helped establish better-automated data management, minimized the impact on existing market practices for traditional financial institutions, allowed clients to retrieve historical data without manual record-keeping, and provided broader application programming interface (API) solutions for price data, according to the DTCC report.

The U.S. banking firms that participated in the pilot included American Century Investments, BNY Mellon, Edward Jones, Franklin Templeton, Invesco, JPMorgan, MFS Investment Management, Mid Atlantic Trust, State Street, and U.S. Bank.

Following the DTCC report, Chainlink’s token surged 12.5%, as reported by CoinGecko. LINK has gained over 130% in the past 12 months, reflecting a broader uptrend in the crypto market.

The DTCC report arrives amid growing enthusiasm for real-world asset tokenization from major traditional financial institutions. On March 19, BlackRock launched a tokenized money market fund called BUIDL on the Ethereum network, offering native U.S. dollar yields.

This fund allows investors to purchase tokens representing shares in the fund, which invests in assets such as U.S. Treasury bills. The fund is referred to as the “digital liquidity fund” because it is digitized on the Ethereum blockchain and operates as an ERC-20 token called BUIDL.