Chainlink is thrilled to announce the successful outcome of a groundbreaking Smart NAV industry pilot in collaboration with DTCC and 10 major global financial institutions. This pilot project accomplished the onchain delivery of crucial mutual fund data. DTCC, renowned for managing a staggering $2 quadrillion annually, is the largest post-trade market infrastructure platform in the world. As a post-trade market infrastructure, DTCC is responsible for clearing, settlement, asset servicing, data management, and trade reporting for millions of security transactions each day.
We are delighted to share the results of the Smart NAV industry pilot, which involved collaboration between @The_DTCC, Chainlink, and 10 of the largest financial institutions globally. This pilot successfully delivered key mutual fund data onchain. For the full report, please visit: [insert link]. The implications for fund tokenization are significant. See the thread below for more details. [insert image]
The pilot conducted with DTCC demonstrated how Chainlink and DTCC can make net asset value data accessible on virtually any private or public blockchain. The integration also ensures automated data dissemination and historical data access, thereby creating opportunities for fund tokenization among users.
One key insight gained from this pilot is the recognition of Chainlink’s CCIP as an open blockchain interoperability framework. This framework prevents future fragmentation and paves the way for novel initiatives by establishing an abstraction layer between DTCC and blockchains.
As mutual fund tokenization gained popularity, DTCC recognized the potential of leveraging pricing and rate data on the chain for new initiatives. The NAV data can now be accessed on any blockchain. The Smart NAV pilot served as an extension of DTCC’s Mutual Fund Profile Service I, which is the industry standard for transmitting Net Asset Value data, also known as “Price and Rate.”
DTCC, Chainlink, and 10 market participants collaborated to assess the feasibility and value of delivering a blockchain-based price solution. This collaboration opens up new opportunities and enables experimentation in asset management.
The pilot demonstrated that structured data on-chain, combined with standard roles and processes, provides a means of embedding core data into a wide range of on-chain use cases. These include tokenized funds and bulk consumer smart contracts that contain data for multiple funds. The ability to achieve this in real time allows for further exploration within the industry and supports a multitude of downstream use cases.
Lastly, DTCC ensures that data can be used and regulated, with Chainlink’s CCIP serving as the interoperability layer. The potential use cases for this core function, as demonstrated in this experiment, are nearly limitless. This advancement will lead to more efficient and improved operational processes.
Tags: LINK
