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Chainlink (LINK) price rises 7% as DTCC completes pilot to accelerate RWA tokenization with participation from JPMorgan, Franklin Templeton and BNY Mellon
The Depository Trust and Clearing Corporation (DTCC), the world’s largest securities settlement system, has completed a pilot project with blockchain oracle Chain link (LINK) and several large U.S. financial institutions, with the aim of helping accelerate the tokenization of funds, according to a Thursday Report published by DTCC.
The goal of the project called Smart NAV was to establish a standardized process for bringing and disseminating fund net asset value (NAV) data on virtually any private or public blockchain using Chainlink. CCIP interoperability protocol. Market participants included American Century Investments, BNY Mellon, Edward Jones, Franklin Templeton, Invesco, JPMorgan, MFS Investment Management, Mid Atlantic Trust, State Street and US Bank.
Upon completing the pilot, DTCC “discovered that by providing structured data on-chain and creating standard functions and processes, foundational data could be incorporated into a multitude of on-chain use cases such as tokenized funds and ‘consumer on-chain’ smart contracts. mass’, which are contracts that contain data for several funds,” says the report.
Chainlink’s native LINK token gained over 7% following news of the DTCC pilot, reaching $15 for the first time since May 6, outperforming the broader crypto market benchmark CoinDesk 20 Index(CD20) slight decline during the same period.
The pilot took place as tokenization of real world assets (RWA), like bonds, funds and other traditional investments, has become one of the most important use cases for blockchain technology. Several financial heavyweights like BlackRock, Citi and HSBC have thrown their hat into the ring in search of benefits such as operational efficiencies, faster settlements and greater transparency compared to using traditional financial pipelines.
UPDATE (May 16, 20:25 UTC): Adds LINK token price advancement.