DTCC and Chainlink Pioneer Tokenization of Funds, Boost LINK Value


In a pioneering move to expedite the tokenization of funds, the Depository Trust and Clearing Corporation (DTCC) has united with blockchain oracle Chainlink and a host of leading United States banking institutions for a fruitful pilot initiative. The successful endeavor has not only broken new ground for blockchain technology adoption in conventional asset management but has also ignited a significant ascension in the price of Chainlink’s proprietary cryptocurrency, LINK, which has proudly crested the $14 benchmark.

The milestone-studded endeavor, christened “Smart NAV”, was devised by the DTCC in pursuit of amplifying the capabilities of its industry-standard Mutual Fund Profile Service I (MFPS I), a platform renowned for transmitting crucial “Price and Rate” data or “NAV data”. In leveraging Chainlink’s unique capacities for cross-chain interoperability and blockchain abstraction, the pilot was designed to appraise the potential of on-chain price and rate data as a pivotal catalyst for innovative ventures, notably in the sphere of mutual fund tokenization.

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To effectively examine the value of a DLT-rooted price and rate dissemination solution in the industry landscape, DTCC sought the alliance of asset managers, service providers, and distributors. Among the invitees were prominent names like American Century Investments, BNY Mellon, Edward Jones, Franklin Templeton, Invesco, JPMorgan, MFS Investment Management, Mid Atlantic Trust, and State Street.

The reception to the pilot was unquestionably positive. The collaboration of DTCC with the collection of US banking entities and Chainlink proved conclusively that structured data could be furnished on-chain, unlocking potential for multiple on-chain applications fed by foundational data. The capabilities of such a feature are wide-ranging and may provide support to brokerage portfolio applications and ensure real-time automated data dissemination. Smart NAV, in its vision, aims to offer inherent access to historical data and streamline the transmission of price and rate data via fresh data consumption interfaces.

The successful pilot met numerous key objectives: it sanctioned user interfaces and applications that utilize on-chain data, it set up the automation of data routing through smart contracts for dynamic data management, and it thwarted potential future fragmentation through Chainlink’s Cross-Chain Interoperability Protocol (CCIP).

DTCC emphasized that the alliance with Chainlink was instrumental to the triumph of the Smart NAV use case. Enabled by Chainlink’s abstraction layer, coupled with its cross-chain interoperability, DTCC was able to actualize flawless exchanges of data across multiple blockchains – a feat that nullifies the need for DTCC to form individual connections to each blockchain, reducing both costs and operational complexities while optimizing data accessibility.

LINK, Chainlink’s proprietary cryptocurrency, saw a bull run following the announcement – at the time of the press release, the LINK token triumphantly ascended above the $14.88 mark, a decidedly robust 6.8% price hike since the initial announcement was made public. Trading volume data for the token from CoinGecko also reported a significant rise of 17% in the subsequent hours, touching the impressive figure of $400 million.

However, for LINK to recuperate from its 72% losses from a record high of $52.70 attained in May 2021, it appears to confront two significant resistance levels per LINK’s daily LINK/USD chart. With these resistance walls stationed at $15.18 and $17.8 respectively, only the future can tell if the current bullish drive will sustain and push the price of LINK beyond these markers.