DTCC partners with Chainlink to provide on-chain data integration services, with JPMorgan also participating.

The Depository Trust & Clearing Corporation (DTCC), a leading securities clearing and settlement company, has partnered with Chainlink, a leader in cross-chain data transmission protocols, to venture into the digital asset space. Their pilot project, Smart NAV, leverages blockchain technology to enhance data dissemination in financial markets, exploring new opportunities in financial services through the integration of digital assets.

Smart NAV Objectives and Partners

DTCC partners with Chainlink to enter the digital assets field. They have released a Smart NAV pilot report, successfully utilizing blockchain technology to enhance data dissemination in financial markets, and further exploring new opportunities in financial services through the integration of digital assets.

The industry partners involved in this collaboration include prominent Wall Street giants such as BNY Mellon, JPMorgan, Franklin Templeton, Invesco, State Street, and others.

MFPS I Provides On-Chain Data Integration for Fund Companies

DTCC's Mutual Fund Profile Service I (MFPS I) is an automated solution for fund companies to provide price and rate data to intermediary institutions, serving over a thousand clients.

The Smart NAV pilot expands its backend data processes on the right side of the diagram below, where data is not only sent through existing channels but also transformed for transmission via Chainlink's signature transmission protocol, the CCIP Cross-Chain Interoperability Protocol, on blockchain networks, whether private or public.

The pilot demonstrates passing structured data on-chain and establishing standard roles and processes, enabling foundational data integration into various on-chain applications, including tokenized funds and smart contracts managing multiple fund data. This functionality not only supports future industry exploration but also catalyzes many downstream applications, such as broker investment portfolio management tools.

Furthermore, the pilot highlights the additional benefits of real-time, automated data dissemination and seamless access to historical data. This also helps enhance operational efficiency and supports the creation of innovative financial products and services. By embedding trusted data on-chain, DTCC paves the way for a more reliable and transparent financial ecosystem.

Future Outlook

With the success of the pilot, DTCC sees the potential for further expansion of blockchain technology. Future explorations could apply their technical capabilities to more applications beyond price and rate data dissemination, further driving innovation and efficiency in financial services.

The Smart NAV pilot represents a significant integration of blockchain technology with financial market infrastructure. By achieving the propagation of trusted and verifiable data across various blockchains, DTCC and Chainlink are paving new paths for innovation in the asset management field. As the industry continues to evolve towards various applications like tokenized funds, insights gained from this pilot will play a crucial role in shaping the future of digital asset integration in financial services.