DTCC and Chainlink collaborate to provide on-chain data integration services, with involvement from JPMorgan.
The Depository Trust & Clearing Corporation (DTCC) is partnering with leading cross-chain transmission protocol provider Chainlink to enter the digital asset field. Their launch of the Smart NAV pilot aims to enhance data dissemination in the financial market using blockchain technology and explore new opportunities in financial services through the integration of digital assets.
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Smart NAV Objectives and Partners
MFPS I Provides On-chain Data Integration for Fund Companies
Future Outlook
DTCC is collaborating with Chainlink to enter the digital asset field. They have announced the successful Smart NAV pilot, which utilizes blockchain technology to enhance data dissemination in the financial market and further explore new opportunities in financial services through the integration of digital assets.
The industry partners participating in this collaboration include renowned 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 for delivering price and rate data to intermediary institutions, serving over a thousand clients.
The Smart NAV pilot expands the backend data flow (on the right side of the image below) and, in addition to being sent through existing channels, the data is also transformed to be transmitted on the blockchain (both private and public) through Chainlink’s signature transmission protocol, CCIP (Cross-Chain Interoperability Protocol).
The pilot demonstrates that by transmitting structured data on-chain and establishing standardized roles and processes, foundational data can be integrated into various on-chain applications, including tokenized funds and smart contracts managing multiple fund data. This functionality not only supports future industry exploration but also facilitates numerous downstream applications, such as brokerage portfolio management tools.
Furthermore, the pilot highlights the additional advantages of real-time, automated data dissemination, and seamless navigation of historical data. This also contributes to improving operational efficiency and supporting 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 recognizes the potential for blockchain technology to expand. Future explorations can apply its technical capabilities to more applications beyond price and rate data dissemination, further driving innovation and efficiency in financial services.
The Smart NAV pilot represents a significant step in integrating blockchain technology with the financial market infrastructure. By achieving trusted and verifiable data dissemination on various blockchains, DTCC and Chainlink are opening new paths for innovation in the asset management field. As the industry continues to develop towards applications such as tokenized funds, insights gained from this pilot will play a crucial role in shaping the future of digital asset integration in financial services.
Chainlink
DTCC
Smart NAV
Further reading:
DTCC: From April 30th, Bitcoin and Cryptocurrency ETFs will no longer be accepted as collateral
Fidelity Bitcoin Spot ETF added to DTCC, Reuters: Key details obtained from negotiations with the SEC
