WHY $LINK is Mooning 🚀
Chainlink Completes Collaboration Pilot with U.S. Banks
The pilot program tested a method of bringing traditional financial fund data onto the blockchain, with participation from major banks like JPMorgan and BNY Mellon.
The Depository Trust and Clearing Corporation (DTCC), the world’s largest settlement system, along with blockchain oracle Chainlink, recently concluded a pilot program involving several major US banking firms. The program aimed to facilitate the tokenization of traditional finance funds.
Known as the Smart NAV Pilot program, it sought to standardize the provision of net asset value (NAV) data for funds across different blockchains. This was achieved through the utilization of Chainlink’s Cross-Chain Interoperability Protocol (CCIP), as outlined in a DTCC report dated May 16.
According to the report, the pilot demonstrated that by delivering structured data on-chain and establishing standard roles and processes, foundational data could be integrated into various on-chain applications. These include tokenized funds and “bulk consumer” smart contracts, which manage data for multiple funds.
These capabilities not only pave the way for future industry exploration but also enable various downstream use cases, such as brokerage applications, streamlined data dissemination, and easier access to historical fund data. Additionally, the pilot facilitated better-automated data management, minimized disruption to existing market practices for traditional financial institutions, allowed clients to access historical data without manual record-keeping, and offered broader API solutions for price data.