As a seasoned crypto investor with a background in traditional finance, I’m thrilled about the recent partnership between DTCC, Chainlink, and several major US banking institutions. This collaboration marks a significant milestone for blockchain technology’s adoption in the asset management sector.
As a crypto investor, I’m excited to share that the Depository Trust and Clearing Corporation (DTCC), where I hold some of my traditional investments, has recently teamed up with Chainlink, a well-known blockchain oracle, and several esteemed American banking institutions for an innovative pilot project. Our goal is to speed up the tokenization process for funds. In simpler terms, we’re exploring how to represent real-world assets as digital tokens on a blockchain, making transactions more efficient and accessible.
As an analyst, I’ve observed that the partnership between various players in the traditional asset management industry and Chainlink has been instrumental in facilitating the integration of blockchain technology into this sector. This collaboration has not only opened up new opportunities but also significantly influenced the value of Chainlink’s native cryptocurrency, LINK. The price of LINK has breached the $14 mark as a result of this development.
Major Asset Managers Join DTCC And Chainlink
DTCC created a new pilot system named Smart NAV to expand the capabilities of their established industry platform, MFPS I. This platform is widely used for transmitting “Price and Rate” information, which is frequently referred to as “NAV data.”
Using Chainlink’s ability to connect different blockchains and abstract complex blockchain functionality, the experiment explored the possibility of utilizing real-time price and exchange rate information obtained from the blockchain as a crucial foundation for innovative projects, primarily in the area of mutual fund tokenization.
To assess the significance of a DLT-based pricing and rate transmission system in the financial industry, DTCC joined forces with asset managers, service providers, and distributors such as American Century Investments, BNY Mellon, Edward Jones, Franklin Templeton, Invesco, JPMorgan, MFS Investment Management, Mid Atlantic Trust, and State Street.
On-Chain Data Delivery For Fund Tokenization
Based on the latest report, the partnership between DTCC, US banks, and Chainlink successfully demonstrated the ability to transfer structured data onto blockchain. This breakthrough allows fundamental data to be integrated into various on-chain applications.
As a researcher studying Smart NAV, I can tell you that this technology carries significant implications. It can bolster brokerage portfolio applications and enable real-time, automated data dissemination. Furthermore, it is designed to grant easy access to historical data and streamline the process of sharing price and rate information through innovative interfaces for data consumption.
The pilot reportedly made significant strides, accomplishing various noteworthy objectives. For instance, they confirmed the functionality of user interfaces and applications that utilize on-chain data. Additionally, they set up the automation of data routing via smart contracts for effective data management. Lastly, they employed Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to hinder potential future fragmentation.
The DTCC acknowledged that the collaboration with Chainlink significantly contributed to the accomplishment of the Smart NAV project. By offering an interface for interoperability between various blockchains through its capabilities, Chainlink has enabled “smooth” data transfer across multiple platforms.
As an analyst, I would describe this approach as follows: By implementing this method, DTCC is relieved from setting up separate links to every single blockchain. This reduction in requirements not only brings down expenses but also simplifies the operational landscape. At the same time, it guarantees that necessary data remains accessible and can be optimized effectively.
Bullish Momentum For LINK
I’ve noticed an impressive 6.8% price surge for the LINK token as of now, with the token value breaking through the $14.88 threshold following the recent announcement made public on Thursday.
As a researcher examining market data, I’ve noticed an impressive 17% increase in trading volume for this token over the past few hours according to CoinGecko. This surge has translated into a considerable figure of over $400 million in total volume.
As a crypto investor, I’ve noticed that LINK has taken a significant hit, losing around 72% of its value since its all-time high of $52.70 in May 2021. Looking at the daily LINK/USD chart, it appears that there are two major hurdles that LINK must overcome if it is to recover. These resistance levels could potentially prevent the token from advancing further and may require some extra effort on the part of buyers to push the price higher.
The resistance barriers for LINK are found at $15.18 and $17.8. It’s uncertain if the ongoing bullish trend will continue, potentially driving the price up past these thresholds towards $20.
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2024-05-17 04:17