DTCC, the world's largest clearing system, and Chainlink, a blockchain oracle service provider, have completed a Smart NAV pilot program with the participation of many major banks in the US. The program aims to standardize the method of providing net asset value (NAV) data of funds on blockchain.

As reported by DTCC on May 16, Smart NAV is deployed with the aim of standardizing the method of providing net asset value (NAV) data of funds on blockchain, using the Multi-Chain Interoperability Protocol. (CCIP) by Chainlink.

The program demonstrated that providing structured data on the blockchain and creating standard roles and processes can embed the underlying data into many use cases on the blockchain, such as tokenized funds and Smart contracts aggregate data. This type of contract is designed to store and manage data for many different funds.

According to DTCC, this capability can support future industry exploration and open up many new applications and services built on a standardized data platform and put on the blockchain, such as such as brokerage applications, more automated data dissemination, and easier access to historical data for funds.

The pilot program has helped establish better automated data management, limiting the impact on current market activities for traditional financial institutions, allowing customers to retrieve historical data without eliminates the need for manual record keeping and provides broader API solutions for price data.

US banks participating in the pilot program include American Century Investments, BNY Mellon, Edward Jones, Franklin Templeton, Invesco, JPMorgan, MFS Investment Management, Mid Atlantic Trust, State Street and U.S. Bank.

Following DTCC's report, Chainlink's LINK token increased 12.5% ​​to $15.72, according to CoinGecko. Over the past 12 months, LINK has increased more than 130% amid a growing cryptocurrency market.

DTCC's report comes amid growing interest in tokenizing real-world assets from major traditional financial institutions. On March 19, BlackRock launched a tokenized money market fund (MMF) called BUIDL on the Ethereum network, offering yields in US dollars.

The cooperation between DTCC and Chainlink, along with the participation of major financial institutions, shows that the trend of asset tokenization is gaining increasing attention and has the potential to change the face of the traditional financial industry.