DTCC Launches Smart NAV Pilot, Integrating With ChainLink

The world’s largest settlement system, the Depository Trust and Clearing Corporation (DTCC), is all set to launch its pilot program for major banks based in the USA to facilitate the tokenization of real assets. The blockchain facilitator for the process will be ChainLink, a blockchain oracle.

As reported, DTCC has revealed its latest innovation, the Smart NAV pilot. It is a significant step towards the integration of blockchain technology within the traditional finance industry.

DTCC has over fifty years of experience offering trusted service as a financial market infrastructure (FMI). The company has firmly established its position as a leading partner for financial market participants worldwide. 

The company leveraged its extensive expertise and industry knowledge to develop Smart NAV. This specially designed pilot program is aimed at exploring the potential of digital assets and blockchain in revolutionizing financial services.

To offer these services, DTCC is partnering with ChainLink, a leading technology platform for cross-chain interoperability and blockchain integration. DTCC is ready to begin its collaborative journey.

Understanding Smart NAV and Partners Involved

The Smart NAV pilot revolves around the Mutual Fund Profile Service I (MFPS I), an industry-standard platform utilized for transferring crucial ‘Price and Rate’ data. It is commonly referred to as NAV (Net Asset Value) data. DTCC has identified an opportunity to improve its services by delivering on-chain price and rate data.

It will further facilitate the exploration of new initiatives within the asset management space. 

The report discloses the organizations that are participating in the Smart NAV pilot program, including American Century Investments, BNY Mellon, JP Morgan, and State Street. 

How Smart NAV Works

The extension capabilities begin at the point of data dissemination and then transfer through the existing channels. Then, the data is disseminated across virtually any blockchain, private or public, through ChainLink’s Cross-Chain Interoperability Protocol (CCIP), an open blockchain interoperability standard. 

Source: dtcc.com

It reveals a shift in the process of data dissemination and management within the financial ecosystem. It delivers structured data on-chain and establishes standard roles and processes, Smart NAV sets the foundation for a myriad of on-chain use cases, including tokenized funds and smart contracts for larger customers.

This innovation will support future industry exploration while simultaneously facilitating real-time, automated data dissemination and access to historical data, revolutionizing traditional brokerage portfolio applications.

The Smart NAV pilot validated a model for user interfaces and applications leveraging on-chain data. The automated data will drive smart contracts to ensure data management throughout the asset lifecycle.

The pilot further promoted a model that prevents future fragmentation through ChainLink’s cross-chain interoperability protocol (CCIP). It minimizes the impact on existing marketplaces and client-driven processes.

Path Ahead

DTCC designs and explains the roadmap for the future as it extends beyond the distribution of price and rate data. If the current process is successfully implemented, it will support future exploration, including the integration of expanded datasets and workflow automation triggered by data dissemination.

Moreover, the pilot lays the groundwork for smart contract governance capabilities, enabling direct data capture from depositors across multiple blockchains.

With the launch of the Smart NAV pilot, DTCC redefines its commitment to drive innovation and shape the future of financial services. As blockchain technology evolves, DTCC stands at the forefront, pioneering solutions that enhance efficiency, transparency and trust across global markets.

Amanda Shinoy

Amanda Shinoy is one of the few women in the space invested knee-deep in crypto. An advocate for increasing the presence of women in crypto, she is known for her accurate technical analysis and price prediction of cryptocurrencies. Readers are often waiting for her opinion about the next rally. She is a finance expert with an MBA in finance. Quitting a corporate job at a leading financial institution, she now engages herself full-time into financial education for the general public.