DTCC, the American financial market infrastructure company, and Chainlink, the leading oracle provider, have successfully completed the Smart NAV pilot project. This initiative aims to accelerate the creation and issuance of tokenized funds within the RWA sector. Major financial and banking giants, including JP Morgan, BNY Mellon, State Street, Franklin Templeton, Invesco, and others, participated in the program.
Meanwhile, the LINK token is on fire: following the news, it skyrocketed by 20% in the last 24 hours, adding nearly $2 billion to its market capitalization.
Let’s see everything in detail below.
Summary
DTCC and Chainlink successfully conclude a pilot project “Smart NAV” in collaboration with JPMorgan and other banking giants
The Depository Trust & Clearing Corporation (DTCC), a company engaged in clearing, settlement, and trade reporting services for the American financial markets, has successfully completed the Smart NAV pilot project with the world’s largest blockchain oracle Chainlink, involving major players like JPMorgan.
The program aimed to assess the feasibility and value of a DLT-based price and rate dissemination solution, designed to unlock new benefits and drive innovation in the asset management space. Simplifying, we can consider the pilot project as an attempt to accelerate the fund tokenization, testing the data on the Net Asset Value (NAV) through blockchain infrastructures and the interoperability protocol CCIP by Chainlink.
The results from the pilot project increase the possible future connections between Chainlink and the world of traditional investments, aiming to spread the practices of tokenization of real-world assets (RWA). Several multinational investment companies such as BlackRock, Citi, and HSBC have recently stated how tokenization of funds could provide greater transparency to the country’s financial fabric and expand the flexibility and efficiency of capital.
According to the detailed report from DTCC, the smart NAV allowed JPMorgan and other participants to retrieve historical data of the analyzed assets without manual record keeping and provided broader solutions for application programming interface (API) for price data. In the report we read the following:
“The pilot discovered that by providing structured data on the chain and creating standard roles and processes, basic data could be incorporated into a multitude of chain use cases, such as tokenized funds and ‘bulk consumer’ smart contracts, which are contracts that hold data for multiple funds.”
In addition to JPMorgan, other 9 leading financial institutions in the American market have joined the initiative, namely BNY Mellon, Edward Jones, Franklin Templeton, Invesco, MFS Investment Management, Mid Atlantic Trust, State Street, and U.S Bank.
LINK reacts positively to the news and pumps 20%: bottom reached!
After the success recorded in the Smart NAV pilot project, in which banking giants such as JPMorgan and State Street participated, the utility token of Chainlink (LINK) has shown excellent performance in the cryptocurrency market. In the last 24 hours, LINK has grown by about 20%, going from $13.8 to the current $16.4. Meanwhile, LINK had a significant increase in trading volumes and a jump in market capitalization of almost 2 billion dollars.
Considering the price movement from the opening on Wednesday, May 15th, the cryptocurrency has appreciated by 26.6%.
After nearly two months of bearish price action, during which LINK lost almost 50% of its value, from its peak on March 11th to its low on April 13th, the token now appears to be seeing the light. The quotes of the Chainlink currency, which is used in DeFi to pay for the services offered by the oracle, have returned today above the EMA 50 daily, suggesting a potential graphical reversal and a recovery of bullish momentum. The pump arrives at the same time as the recovery of the Asian markets, especially the Chinese one, which may have supported a more significant rally than expected. Even BTC and ETH have indeed recorded a price growth, but at a much lower rate compared to that of LINK.
Currently, the token is challenging to keep prices above $16, aiming in the short term for a recovery of the key level of $20 and then continue the bullish climb towards new local highs. If it manages to stabilize above $23 before reaching the new ATH of BTC, we could hypothesize a bright second half of 2024 for the currency.
In the long term, the success of LINK is determined by the ability of the Chainlink oracle to expand and spread its services within the international financial landscape, bringing tokenization of funds and the connection between blockchain and banks to unprecedented levels. Despite the criticisms often directed at LINK, as a token with limited utility, we cannot fail to recognize the importance and power of Chainlink’s technological infrastructure and its explosive potential for the future of the RWA world.
