Franklin

Bank

United

Pilot

Chainlink

The world’s largest settlement system, the Depository Trust and Clearing Corporation (DTCC), and blockchain oracle Chainlink have wrapped up a pilot program with several major banking firms in the United States to increase traditional finance fund tokenization.
The Smart NAV Pilot program was conducted to standardize a method of providing net asset value (NAV) data of funds across blockchains using Chainlink’s Cross-Chain Interoperability Protocol (CCIP), <a href="https://www.dtcc.com/dtcc-connection/articles/2024/may/16/smart-nav-pilot-report-bringing-trusted-data-to-the-blockchain-ecosystem" target="_blank" rel="noopener nofollow">according</a> to a May 16 DTCC report.
“The pilot found that by delivering structured data on-chain and creating standard roles and processes, foundational data could be embedded into a multitude of on-chain use cases, such as tokenized funds and ‘bulk consumer’ smart contracts, which are contracts that hold data for multiple funds,” it wrote.
These capabilities could support future industry exploration, as well as powering “numerous downstream use cases” like brokerage applications, more automated data dissemination and easier access to historical data for funds, it said.
The pilot helped establish better-automated data management, limited impact on existing market practices for traditional financial institutions, enabled clients to retrieve historical data without manual record keeping and provided broader application programming interface (API) solutions for price data, the DTCC’s report noted.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-05/b86deede-d807-45e0-95b7-05e1ddf8d041.png" alt="" title="">
 <figcaption style="text-align: center;">
 Key NAV pilot takeaways. Source: DTCC
 </figcaption>
</figure>
The United States banking firms that participated in the pilot include American Century Investments, BNY Mellon, Edward Jones, Franklin Templeton, Invesco, JPMorgan, MFS Investment Management, Mid Atlantic Trust, State Street and U.S. Bank.
Related: <a href="https://cointelegraph.com/news/deutsche-bank-singapore-mas-asset-tokenization">Deutsche Bank joins Singapore’s asset tokenization project</a>
Chainlink’s (<a href="https://cointelegraph.com/chainlink-price-index">LINK</a>) token&nbsp;rose 12.5% following the DTCC’s report, <a href="https://www.coingecko.com/en/coins/chainlink" target="_blank" rel="noopener nofollow">according</a> to CoinGecko.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-05/63a02a05-1023-4429-95e7-c8daa643b0fa.png" alt="" title="">
 <figcaption style="text-align: center;">
 The price of LINK spiked 12.5% following the DTCC report. Source: CoinGecko
 </figcaption>
</figure>
LINK has gained over 130% in the last 12 months amid a broader uptick in the crypto market. 
The DTCC report comes amid wider enthusiasm for real-world asset tokenization from major traditional financial institutions.
On March 19, BlackRock <a href="https://cointelegraph.com/news/blackrock-begins-asset-tokenization-launch-digital-liquidity-fund">launched a tokenized money market fund</a>&nbsp;dubbed BUIDL on the Ethereum network, offering native U.S. dollar yields.
The fund <a href="https://cointelegraph.com/news/blackrock-begins-asset-tokenization-launch-digital-liquidity-fund">allows investors to purchase tokens</a> representing shares in the fund, which invests in assets like 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.
Magazine:&nbsp;<a href="https://cointelegraph.com/magazine/uk-cannabis-millionaires-legal-deals-on-wheels-via-crypto-blockchain/">UK cannabis millionaire’s legal ‘deals on wheels’ via crypto</a>

DTCC, Chainlink complete fund data tokenization pilot with US banks

Cointelegraph

Other articles published on May 17, 2024

Bitcoin ETFs in US Enjoy 4th Consecutive Day of Inflows, Reaching $257 Million Yesterday

Did FED’s Rate Cut Pushed Earlier After Positive Inflation Reports? WSJ Correspondent Clarified

JPMorgan Names Key Reasons Why Bitcoin Price Won't Rally Hard

Altcoins a ‘relatively huge’ risk as days of big returns are gone, say analysts

Arbitrum DAO Eyes $3 Billion for Big Tech-Style Expansion

Shiba Inu Breaks Bearish Spell: Trend Line Breach Signals Reversal

Join our free newsletter for daily crypto updates!