The Depository Trust & Clearing Corporation (DTCC) has partnered with Chainlink, a leader in cross-chain transmission protocols, to enter the digital asset field. The launch of the Smart NAV pilot aims to enhance data dissemination in the financial market using blockchain technology, exploring new opportunities for financial services through the integration of digital assets.
Table of Contents
Toggle
Smart NAV Goals and Partners
MFPS I Provides On-chain Data Integration for Fund Companies
Future Outlook
DTCC has announced its collaboration with Chainlink to enter the digital asset field. They have released the Smart NAV pilot report, which successfully improves data dissemination in the financial market using blockchain technology and further explores new opportunities for financial services through the integration of digital assets.
Industry partners involved in this collaboration include well-known Wall Street giants such as BNY Mellon, JPMorgan, Franklin Templeton, Invesco, and State Street.
DTCC’s Mutual Fund Profile Service I (MFPS I) is an automated solution provided to fund companies, serving over a thousand clients by providing them with price and rate data through intermediary institutions.
The Smart NAV pilot expands the backend data process (on the right side of the following image), where data is not only sent through existing channels but also transformed to be transmitted on the blockchain, either private or public, through Chainlink’s signature transmission protocol CCIP (Cross-Chain Interoperability Protocol).
The pilot demonstrates that by delivering structured data on-chain and establishing standard roles and processes, underlying data can be integrated into various on-chain applications, including tokenized funds and smart contracts that manage multiple fund data. This functionality not only supports future industry exploration but also facilitates many downstream applications, such as brokerage portfolio management tools.
In addition, the pilot highlights the additional advantages of real-time, automated data dissemination, and seamless access to historical data. This also helps improve operational efficiency and supports the creation of innovative financial products and services. By embedding trusted data on-chain, DTCC paves the way for a more reliable and transparent financial ecosystem.
With the success of the pilot, DTCC also sees the potential for blockchain technology to expand. Future explorations can apply its technical capabilities to more applications beyond the dissemination of price and rate data, further driving innovation and efficiency in financial services.
The Smart NAV pilot represents a significant integration of blockchain technology with the financial market infrastructure. By achieving the dissemination of trustworthy and verifiable data on various blockchains, DTCC and Chainlink are paving the way for innovation in the asset management field. As the industry continues to develop applications such as tokenized funds, the insights gained from this pilot will play a crucial role in shaping the future of integrating digital assets into financial services.
Chainlink
DTCC
Smart NAV
Further Reading
DTCC: Bitcoin and Cryptocurrency ETFs No Longer Accepted as Collateral Starting April 30
Fidelity Bitcoin Spot ETF Listed on DTCC, Negotiations with SEC Reportedly Achieved Key Details.