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DTCC Pilot Successfully Tests Tokenized Fund Data Sharing for Brokerage Apps

DTCC Pilot Successfully Tests Tokenized Fund Data Sharing for Brokerage Apps

Story Highlights

  • DTCC and Chainlink test sharing fund data on blockchains for traditional finance.
  • Standardized data could streamline brokerage apps and data sharing for funds.
  • Pilot paves the way for future exploration of blockchain applications in finance.

The Depository Trust and Clearing Corporation (DTCC), the world’s largest settlement system, has concluded a successful pilot program exploring tokenized fund data with blockchain oracle network Chainlink. This collaboration, involving major US banking firms, paves the way for streamlined brokerage applications and other innovative uses in traditional finance.

Standardizing On-Chain Data for Tokenized Funds

The “Smart NAV Pilot” focused on creating a standardized method for delivering net asset value (NAV) data for funds across different blockchains. This was achieved using Chainlink’s Cross-Chain Interoperability Protocol (CCIP). By embedding “structured data on-chain,” the pilot demonstrated the potential for a wide range of blockchain-based applications in finance.

The pilot extended beyond just tokenized funds. The DTCC report highlights that the established data management processes could be applied to “numerous downstream use cases” including:

Brokerage Applications: Streamlined portfolio management and data access for brokerage platforms.
Automated Data Dissemination: Real-time and automated sharing of fund data, improving efficiency.
Historical Data Access: Easier retrieval of historical fund data, eliminating manual record-keeping.

Pilot Participants and Future Implications

Major US banking institutions like American Century Investments, BNY Mellon, and JPMorgan participated in the pilot. The success of this collaboration indicates a strong interest from traditional finance players in exploring blockchain technology for data management and innovation. The DTCC report suggests the pilot’s findings will be used to explore expanding the scope of applications for this technology in the future.

This pilot program signifies a significant step towards integrating blockchain technology into traditional finance. By creating standardized methods for sharing fund data, the DTCC and Chainlink have opened doors for more efficient and innovative applications in the financial industry.