- Decentralized Oracle service provider Chainlink is boosting the DTCC Smart NAV pilot.
- The protocol’s efficiency has placed it at the forefront of the financial data revolution, upside on LINK price.
Decentralized computing platform Chainlink (LINK) has announced the use of its CCIP in the integration between DTCC and the new Smart NAV Pilot. With this development, Chainlink stands out as a leading player in the Decentralized Finance (DeFi) ecosystem.
The new Smart NAV pilot between the DTCC, Chainlink, and 10 market participants demonstrates how Chainlink #CCIP can serve as an abstraction layer between “DTCC and the potentially infinite number of blockchains we may need to integrate.”
Full report: https://t.co/ob3K0s4NXE pic.twitter.com/Cf2cVoOdZy
— Chainlink (@chainlink) May 19, 2024
Function of Chainlink’s CCIP
American financial market infrastructure provider Depository Trust & Clearing Corporation (DTCC) offers clearing, settlement, and transaction reporting services to market players. The firm has been exploring the potential of digital assets and their application in asset management.
One of its key initiatives is the Smart NAV pilot, a collaborative effort with industry participants and Chainlink. This pilot aims to assess the feasibility of delivering price and rate data (NAV data) on a Distributed Ledger Technology (DLT) platform.
Traditionally, NAV data for mutual funds is transmitted through established channels. However, Smart NAV proposes leveraging blockchain technology to disseminate this data in a more automated and real-time manner.
The Smart NAV pilot involved DTCC as the data source and governor of the on-chain solution. Furthermore, Chainlink, with its expertise in interoperability, provided the critical layer for seamless data exchange across different blockchain networks. This collaborative approach highlights the importance of industry-wide cooperation in driving blockchain innovation within financial services.
Data from market participants is gathered and transformed by DTCC in the pilot. It then sends this information to a Chainlink-based platform, which transmits it to any blockchain network, including the current Ethereum-based DTCC platform.
The beauty of Smart NAV lies in its flexibility. By adopting a “chain-agnostic” approach, the pilot ensures the data can be disseminated across different blockchain networks. This opens doors for applications to be built upon the foundation of the Smart NAV.
The pilot’s success has prompted DTCC to investigate how the underlying technology can support a broader range of data types beyond NAV. Also, the firm said it will ensure the solution remains compatible with various blockchain platforms to strengthen wider adoption.
Development and Market Outlook of Chainlink
Per Crypto News Flash’s earlier announcement, development with Chainlink is on the rise. With 2.49 times more activity over the last 30 days than its closest rivals, Chainlink has been positioned as the leader in real-world asset crypto initiatives. According to analysts, this surge in activity positions LINK for a bullish momentum.
Moreover, whale activities on the Chainlink ecosystem have also surged, fuelling a recent market rally for LINK. As Crypto News Flash earlier indicated, Chainlink had 554 active whale wallets as of May 3. A few weeks later, the number of Chainlink whale wallets surged to 567.
The positive network outlook of Chainlink is impacting LINK price remarkably. As of this writing, LINK is trading at $16.96, up by 1.5% in the past 24 hours. The trading volume also increased by 7.7% to $774 million while the market cap is pegged at $9.9 billion.
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