A recent pilot project by Chainlink, in collaboration with DTCC and ten major financial institutions, has successfully delivered key mutual fund data on-chain. This initiative marks, according to a DTCC press release, a significant step towards integrating traditional finance with blockchain technology.

DTCC partnered with Chainlink to explore the potential of blockchain in delivering Net Asset Value (NAV) data. The pilot demonstrated that NAV data could be made accessible across both private and public blockchains, enhancing data dissemination and historical data access.

Chainlink’s Cross-Chain Interoperability Protocol (CCIP) played a crucial role in the project. According to DTCC report, it serves as an open framework for blockchain interoperability, preventing fragmentation and creating a secure abstraction layer between DTCC and various blockchains. This integration supports the growing trend of mutual fund tokenisation by making pricing and rate data available on-chain, thereby enabling new financial initiatives.

Advertisement
PostTrade 360 Nordic 2024

The pilot was an extension of DTCC’s Mutual Fund Profile Service I, which is the industry standard for transmitting NAV data. By bringing this data on-chain, the pilot “opens up opportunities for tokenised funds and bulk consumer smart contracts”. The structured data can now be used in a wide range of on-chain applications, supporting real-time operations and further industry exploration.