US Depository Completes Fund Tokenization Pilot, Highlighting Viability
CryptoNewsTerminal Staff16 May, 2024
US Depository Completes Fund Tokenization Pilot, Highlighting Viability
The Depository Trust & Clearing Corporation (DTCC) has successfully concluded its Smart NAV fund tokenization pilot in collaboration with prominent US financial institutions, including JP Morgan, BNY Mellon, Franklin Templeton, and Invesco. The pilot also involved the participation of blockchain oracle Chainlink (LINK). This pilot aimed to establish a standardized process for integrating and distributing fund net asset value (NAV) data across various private and public blockchains. The Cross-Chain Interoperability Protocol (CCIP) from Chainlink was instrumental in facilitating this process. According to a DTCC report, the pilot demonstrated the feasibility of bringing structured data on-chain. This opens up the possibility of incorporating this underlying data into on-chain applications such as tokenized funds and smart contracts. This breakthrough has significant implications for the future of financial markets and the broader adoption of blockchain technology.
