Chainlink (LINK) has experienced a significant surge, rising by nearly 19% in the past 24 hours, following the announcement of its collaboration with the Depository Trust and Clearing Corporation (DTCC), a prominent financial market infrastructure company based in the United States.
According to data from CoinMarketCap, LINK, currently ranked as the fifteenth largest cryptocurrency by market capitalization, has seen its price surge by 19.24% as of 4:49 a.m. ET on Friday.
The trading volume for the digital asset has also surged by 224.15%, with its market capitalization reaching $9.72 billion.
LINK's price soared from $13.57 to $16.58, outperforming other cryptocurrencies in its market tier, including Bitcoin (BTC), Ether (ETH), Solana (SOL), Toncoin (TON), Dogecoin (DOGE), and Shiba Inu (SHIB).
This remarkable increase in LINK's price is largely attributed to the partnership announcement between DTCC and Chainlink, which integrates the decentralized Oracle network into DTCC's operations.
Collaboration between DTCC and Chainlink
According to a DTCC article, the Chainlink team and the largest settlement system in the world finished a pilot program that included some of the top US banks and was designed to boost the tokenization of traditional finance funds.
The goal of the pilot study, called the Smart NAV Pilot program, is to use Chainlink's Cross-Chain Interoperability Protocol (CCIP) to standardize net asset value (NAV) data that is dispersed over multiple blockchain networks.
The pilot study demonstrated that fundamental data can be integrated into a range of on-chain applications by providing structured data on-chain and defining standardized roles and processes. Tokenized funds and "bulk consumer" smart contracts, which handle data for numerous funds, are among these uses, the research said, adding:
"This capability can support future industry exploration while also powering a variety of downstream use cases, such as brokerage portfolio applications." Other advantages include real-time, more automatic data transmission, and built-in access to previous data.
Following this announcement, the crypto community on social media platform X erupted with excitement, particularly after a post from "DeFiMinty" suggested that the Smart NAV pilot program could have significant implications for Chainlink. With future projections shared by "DeFiMinty," who boasts over 50,000 followers, the user speculated that major industries might start tokenizing real-world assets, and cross-chain protocols like CCIP could play a pivotal role in chain abstraction.
In a detailed report, the DTCC revealed that it had invited asset managers, service providers, and distributors to participate in a series of collaborative workshops aimed at discussing the pilot program and assessing its potential benefits.
Notably, several prominent banking institutions participated in the pilot program, including American Century Investments, BNY Mellon, Edward Jones, Franklin Templeton, Invesco, JPMorgan, MFS Investment Management, Mid Atlantic Trust (operating as American Trust Custody), State Street, and US Bank.
May 2024, Cryptoniteuae