HomeCryptoRWA tokenization: Chainlink and DTCC unveil pilot project tested by major banks

RWA tokenization: Chainlink and DTCC unveil pilot project tested by major banks


On Thursday, Chainlink (LINK) and the Depository Trust & Clearing Corporation (DTCC) introduced a new pilot system called Smart NAV. Tested by major financial players like BNY Mellon, Franklin Templeton or JP Morgan, what does it consist of?

Chainlink (LINK) and DTCC Introduce Smart NAV Pilot

Increasingly, different financial institutions around the world use blockchain systems in order to derive benefits in terms of time savings and management costs. However, a blockchain being by definition a closed system, tools allowing it to bring data from the outside world, oracles, are necessary.

The tokenization of Real World Assets (RWA) being no exception, Chainlink (LINK) as well as the Depository Trust & Clearing Corporation (DTCC)a major American clearing company, presented a new pilot project called Smart NAV.

👉 What is RWA tokenization?

Thus, asset managers and other famous banks have already been able to participate in these developments, including BNY Mellon, Franklin Templeton, Invesco and JP Morgan.

In short, this tool based on the famous Cross-Chain Interoperability Protocol (CCIP) from Chainlink allows you to connect the blockchain systems of different stakeholders, thus giving them access to numerous data without requiring them to keep their own register.

Access to this data is done automatically and in real time thanks to API connections, and presents various use cases, such as access to prices as part of the management of a brokerage portfolio:

The pilot revealed that by providing structured on-chain data and creating standard roles and processes, fundamental data could be integrated into a multitude of on-chain use cases, such as tokenized funds and “Bulk consumption” smart contracts, which are contracts that hold data for multiple funds.

On the technical side, DTCC collects data from funds and transmits it to Chainlink, itself relaying this data, via CCIP, to power a smart contract currently based on a private version of Ethereum (ETH). Then, Smart NAV users can call on this data on their own, as shown in the illustration below:

How Smart NAV, the DTCC pilot project and Chainlink work

How Smart NAV, the DTCC pilot project and Chainlink work

👉 To go further — Discover our guide to Chainlink (LINK)

Although we are still at the beginning of such initiatives in the financial industry, this demonstrates the potential that these blockchain systems can offer. While many major players are taking part, these developments will need to be followed closely.

At the same time, LINK rose 12.5% ​​in 24 hours, now trading at $15.7.

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Source : DTCC

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