DTCC: Chainlink Complete Pilot to Accelerate Fund Tokenization with Major Financial Institutions;
The Depository Trust and Clearing Corporation (DTCC), the world’s largest securities settlement system, completed a pilot project with blockchain oracle Chainlink (LINK) and several major U.S. financial institutions. The initiative aimed to accelerate the tokenization of funds, according to a report published by DTCC on Thursday.
The Smart NAV project established a standardized process to bring and disseminate net asset value (NAV) data of funds across virtually any private or public blockchains using Chainlink's interoperability protocol CCIP. Participants included American Century Investments, BNY Mellon, Edward Jones, Franklin Templeton, Invesco, JPMorgan, MFS Investment Management, Mid Atlantic Trust, State Street, and U.S. Bank.
By completing the pilot, DTCC found that delivering structured data on-chain and creating standard roles and processes could embed foundational data into various on-chain use cases, such as tokenized funds and 'bulk consumer' smart contracts, which hold data for multiple funds.
The pilot highlights the growing trend of tokenizing real-world assets (RWA) such as bonds, funds, and other traditional investments, with benefits including operational efficiencies, faster settlements, and increased transparency.