Major Success For Chainlink: US Banks’ Pilot Program Propels LINK Price Up 6%, Details
May 16 2024 - 9:00PM
NEWSBTC
The Depository Trust and Clearing Corporation (DTCC) has partnered
with blockchain oracle Chainlink and several prominent banking
institutions in the United States to conduct a successful pilot
aimed at accelerating the tokenization of funds. The
collaboration has not only paved the way for the adoption of
blockchain technology in the traditional asset management sector
but has also had a significant impact on the price of Chainlink’s
native cryptocurrency, LINK, which has surged past the $14
threshold. Major Asset Managers Join DTCC And Chainlink The pilot,
called Smart NAV, was developed by DTCC to explore the extension of
its Mutual Fund Profile Service I (MFPS I), an industry-standard
platform that transmits “Price and Rate” data, also known as “NAV
data.” Related Reading: Why Is This Crypto Pundit Warning XRP
Investors To Be At Alert For The Next 3-12 Months By leveraging
Chainlink’s cross-chain interoperability and blockchain abstraction
capabilities, the pilot aimed to investigate the potential of
on-chain price and rate data as a key enabler for new initiatives,
particularly in the realm of mutual fund tokenization. To evaluate
the industry value of a DLT-based price and rate dissemination
solution, DTCC collaborated with asset managers, service providers,
and distributors, including 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 According to the
announcement, the results of the pilot were positive. The
collaboration between DTCC, the US banking institutions, and
Chainlink reportedly showed that structured data can be delivered
on-chain, enabling the embedding of foundational data into multiple
on-chain use cases. This capability has far-reaching
implications, including supporting brokerage portfolio applications
and facilitating real-time, automated data dissemination. Moreover,
Smart NAV aims to provide built-in access to historical data and
simplify the relay of price and rate data through new interfaces
for data consumption. Furthermore, the pilot reportedly achieved
several key milestones, including validating user interfaces and
applications that leverage on-chain data, establishing automation
of data routing through smart contracts for dynamic data
management, and preventing future fragmentation through Chainlink’s
Cross-Chain Interoperability Protocol (CCIP). Related
Reading: QCP Capital Sees Bitcoin Reclaiming $74K Highs – Here’s
Why BTC Could Continue Its Rally Ultimately, the DTCC stated that
the partnership with Chainlink has played a key role in the success
of the Smart NAV use case. By providing an abstraction layer
through its cross-chain interoperability capabilities, Chainlink
has facilitated “seamless” transmission of data across multiple
blockchains. This approach eliminates the need for DTCC to
establish individual connections to each blockchain, mitigating
costs and operational complexities while ensuring data
accessibility and optimization. Bullish Momentum For LINK As
of the time of this press release, the LINK token has successfully
surged above the $14.88 mark, experiencing a notable 6.8% increase
in price since the initial announcement on Thursday. Data
from CoinGecko indicates that the token’s trading volume has also
seen a significant surge of 17% in the last hours, reaching a
substantial figure of $400 million. However, for LINK to
recover from its 72% losses from its all-time high of $52.70
reached in May 2021, it faces two key resistance levels as shown on
the token’s daily LINK/USD chart above. These resistance
walls are located at $15.18 and $17.8 respectively, before
potentially moving towards the $20 mark. It remains to be seen
whether the current bullish momentum will persist and further
propel the price of LINK beyond these levels. Featured image from
Shutterstock, chart from TradingView.com
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