World Largest Settlement System DTCC and Chainlink Completed Fund Tokenization Pilot Program

Reported by Cointelegraph, the world’s largest settlement system, the Depository Trust and Clearing Corporation (DTCC), and blockchain oracle Chainlink have wrapped up a pilot program with several major banking firms in the United States aimed at increasing traditional finance fund tokenization.

The Smart NAV Pilot program was conducted to standardize a method of providing net asset value (NAV) data of funds across blockchains, using Chainlink’s Cross-Chain Interoperability Protocol (CCIP), according to a May 16 DTCC report.

“The pilot found that by delivering structured data on-chain and creating standard roles and processes, foundational data could be embedded into a multitude of on-chain use cases, such as tokenized funds and ‘bulk consumer’ smart contracts, which are contracts that hold data for multiple funds,” it wrote.

These capabilities could support future industry exploration as well as powering “numerous downstream use cases” like brokerage applications, more automated data dissemination, and easier access to historical data for funds, it said.

The pilot helped establish better-automated data management, limited impact on existing market practices for traditional financial institutions, enabled clients to retrieve historical data without manual record keeping, and provided broader API solutions for price data, the DTCC’s report noted.

The U.S. banking firms that participated in the pilot include American Century Investments, BNY Mellon, Edward Jones, Franklin Templeton, Invesco, JPMorgan, MFS Investment Management, Mid Atlantic Trust, State Street, and U.S. Bank.