As the largest settlement system in the world, the Depository Trust and Clearing Corporation (DTCC) has partnered with blockchain oracle Chainlink (LINK) to complete a pilot program with multiple significant U.S. banking companies.
Stay in the know on crypto by frequently visiting Crypto News Today
This initiative’s main objective was to progress the tokenization of conventional finance funds.
After it was revealed that DTCC had successfully completed the tokenization pilot, there was a noticeable 20% increase in the value of Chainlink’s token.
CryptoCaster Quick Check:
This trial combined blockchain technology with traditional finance by utilizing Chainlink’s Cross-Chain Interoperability Protocol (CCIP), which was participated in by well-known Wall Street companies like JP Morgan (NYSE: JPM) and BNY Mellon.
The company recently finished the trial program, called Smart NAV, in cooperation with Chainlink, according to a DTCC report. The program’s goal was to investigate a potential expansion of Mutual Fund Profile Service I (MFPS I), a DTCC service that is the industry standard for transmitting “Price and Rate” data, or “NAV data.”
The pilot demonstrated how foundational data could be used in a variety of on-chain use cases by providing structured data on-chain and standardizing roles and procedures. These included bulk consumer smart contracts, which store data for several funds, and tokenized funds.
Among the notable participants were U.S. Bank, Mid Atlantic Trust, American Century Investments, BNY Mellon, Edward Jones, Franklin Templeton, Invesco, JPMorgan, MFS Investment Management, and State Street.
Market Reactions and Price Fluctuations
The value of Chainlink’s native token, LINK, increased by 12.5% after the publication of the DTCC report. As of this writing, LINK’s market capitalization had risen by 14% in the previous 8 hours, pushing it over $16. This led to the liquidation of $1.96 million in short positions that had been held over the previous 24 hours.
The market’s favorable response to the possibility of fusing blockchain technology with traditional finance is evident in the price spike of LINK.
The real-world asset (RWA) tokenization trend that major traditional financial institutions are displaying a growing interest in includes this pilot program.
Finbold reported that as demand increased, the value of tokenized real-world assets skyrocketed to almost $8 billion.
For example, BlackRock (NYSE: BLK) debuted BUIDL, a tokenized money market fund, on the Ethereum (ETH) network on March 19. Investors can purchase tokens in this fund, which mainly invests in U.S. Treasury bills, to represent shares in the fund.
The Future of Tokenized Assets
Wall Street companies have been interested in blockchain technology for a while, but they have frequently been hesitant to use public blockchains.
A number of well-known companies, such as Microsoft (NASDAQ: MSFT) and Goldman Sachs (NYSE: GS), became members of the Canton Network in 2023. This private pilot network was established to enable major institutions to investigate decentralized infrastructure.
The objective of the new Chainlink test is to acquire Wall Street data directly from the institutions and make it accessible on public networks for use by smart contracts and other Real World Asset protocols. This makes the test unique.
This represents a major advancement in integrating blockchain technology with mainstream finance, showcasing the potential for real-time automated data dissemination and seamless access to historical data.
If this article brought you clarity, insight, or value—support the work that made it possible.
At CryptoCaster, we report on Web3, crypto markets, and institutional finance with no billionaire owners, no shareholders, and no hidden agenda. While mainstream media bends toward Elon Musk, BlackRock, and JPMorgan narratives, we stay focused on what matters: truth, transparency, and the public interest.
We don’t just cover the headlines—we investigate the power structures behind them. From FTX and Ripple to the quiet push for CBDCs, we bring fearless reporting that isn’t filtered by corporate interests.
CryptoCaster is 100% paywall-free. Always has been. To keep it that way, we depend on readers like you.
If you believe independent crypto journalism matters, please contribute—starting at just $1 in Bitcoin or Ether. Wallet addresses are below.
Your support keeps us free, bold, and accountable to no one but you.
Thank you,
Kristin Steinbeck
Editor, CryptoCaster
Please Read Essential Disclaimer Information Here.
© 2024 Crypto Caster provides information. CryptoCaster.world does not provide investment advice. Do your research before taking a market position on the purchase of cryptocurrency and other asset classes. Past performance of any asset is not indicative of future results. All rights reserved.
Contribute to CryptoCaster℠ Via Metamask or favorite wallet. Send Coin/Token to Addresses Provided Below.
Thank you!
BTC – bc1qgdnd752esyl4jv6nhz3ypuzwa6wav9wuzaeg9g
ETH – 0x7D8D76E60bFF59c5295Aa1b39D651f6735D6413D
CRYPTOCASTER HEATMAP
