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Chainlink revolutionizes access to the world of RWA and fund tokenization with JP Morgan, BNY Mellon, and State Street


The American financial market infrastructure company DTCC and the oracle Chainlink have just completed an important Smart NAV pilot project aimed at accelerating the process of creating and issuing tokenized funds within the RWA sector.

Big players in the financial and banking world such as JP Morgan, BNY Mellon State Street, Franklin Templeton, Invesco and others have participated in the program.

The LINK token is on fire: after the news, it took off marking a +20% increase in the last 24 hours, adding almost 2 billion dollars in market capitalization.

Let’s see everything in detail below.

We’re excited to share the results of a new Smart NAV industry pilot between @The_DTCC, Chainlink, and 10 of the world’s largest financial institutions that delivered key mutual fund data onchain.

Full report:

The significance for fund tokenization

— Chainlink (@chainlink) May 16, 2024

DTCC and Chainlink successfully conclude a pilot project “Smart NAV” in collaboration with JP Morgan 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, concluded yesterday a Smart NAV pilot project with the world’s largest blockchain oracle Chainlink, involving major players like JP Morgan.

Let’s talk about a program aimed at evaluating the feasibility and value of the supply sector of a price and rate dissemination solution based on DLT capable of enabling new benefits and supporting experimentation in the asset management space.

Simplifying, we can consider the pilot project as an attempt to accelerate the creation of tokenized funds, testing the data on the Net Asset Value (NAV) of the funds practically through blockchain infrastructures and using 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 JP Morgan 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 JP Morgan, 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 JP Morgan 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 dollars to the current 16.4 dollars, simultaneously marking a significant increase in trading volumes and a jump in market capitalization of almost 2 billion dollars.

If we consider the range of movement starting from the opening prices of Wednesday, May 15th, the appreciation of the crypto is 26.6%.

After about 2 months of bearish price action, during which LINK has lost almost 50% of its value from the peak on March 11th to the low on April 13th, it now seems to see 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.

Now for crypto the challenge is 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.

Chainlink $LINK connects banks to blockchains

It’s that’s simple, no need to overcomplicate it

— Zach Rynes | CLG (@ChainLinkGod) May 17, 2024

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