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HomeIndustry NewsDTCC's tokenization pilot identities brokerage portfolio applications
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DTCC’s tokenization pilot identities brokerage portfolio applications

DTCC has announced a partnership with Chainlink for a tokenization pilot called Smart NAV as part of its ongoing exploration of digital assets and their application in financial services.

Amid increased industry attention on mutual fund tokenization, DTCC identified an opportunity for on-chain price and rate data that can serve as a key enabler to the exploration of new initiatives. Taking a ‘chain-agnostic’ approach would be key to enabling other use cases to build atop Smart NAV’s foundations.

Brokerage portfolio applications, data dissemination, historical data

Leveraging DTCC’s digital asset capabilities and Chainlink’s cross-chain interoperability and blockchain abstraction, Smart NAV was designed to explore an extension of a DTCC service, Mutual Fund Profile Service I (MFPS I), the industry standard for transmitting “‘Price and Rate” data (referred to as “NAV data”).

Both firms worked together to evaluate the feasibility and industry value of delivering a DLT-based price and rate dissemination solution that can enable new benefits and support experimentation in the asset management space.

According to the announcement, the pilot found that by delivering structured data on-chain and creating standard roles and processes, foundational data could be embedded into a multitude of on-chain use cases, such as tokenized funds and “bulk consumer” smart contracts, which are contracts that hold data for multiple funds.

This capability can support future industry exploration and can power numerous downstream use cases as well, such as brokerage portfolio applications. Additional benefits include real-time, more automated data dissemination and built-in access to historical data.

DTCC wants to expand the scope of the pilot

Smart NAV centers around providing the capability to make trusted, verifiable data available on (virtually any) blockchain network(s) to support the use of that data in business workflows.

DTCC served as the provider, or sourcer, of that data, as well as the governor of the on-chain solution that stores that data, while Chainlink’s CCIP served as the interoperability layer. The core capability explored is applicable across endless use cases that could ultimately power more streamlined and efficient operational processes.

Based on these findings, DTCC wants to expand the scope of the pilot to explore how the technical capability leveraged in the pilot could power a broader range of use cases beyond the dissemination of price and rate data and across a greater number of blockchains.

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