DTCC Leverages Chainlink for Smart NAV Pilot

The pilot program explored the feasibility of delivering mutual fund price and rate data using Chainlink’s CCIP.

By: yyctrader Loading...

data streams shown as glowing neon lines moving from a central source to multiple blockchain nodes

The Depository Trust & Clearing Corporation (DTCC) has released a report on its Smart NAV pilot, which evaluated the feasibility of distributing mutual fund Net Asset Value (NAV) data on blockchain networks.

Smart NAV aimed to create a digital extension to DTCC’s Mutual Fund Profile Service (MFPS I), the industry standard for disseminating price and rate data. The DTCC is an integral part of the U.S. financial system, providing clearing and settlement services since 1973.

Smart NAV Mechanism
Smart NAV Mechanism

The pilot, a collaborative effort between DTCC, oracle provider Chainlink, and ten major financial institutions, including JP Morgan and Franklin Templeton, aimed to determine whether NAV data — a critical component in fund valuation and transaction decision-making — could be standardized and automatically processed within a blockchain environment.

Chainlink’s LINK token soared nearly 20% after the report was released.

LINK Price chart
LINK Price

With the increasing integration of blockchain in the financial sector, the Smart NAV pilot is a significant step in DTCC's exploration of the technology. Its success could be pivotal in managing tokenized assets and simplifying processes for a wide array of financial contracts that rely on mutual fund data.

The study comes as real-world assets (RWA) continue to gain traction across crypto, with the tokenized Treasuries sector exceeding $1.3 billion in assets as of May 16.