The surge in LINK price can be attributed to the announcement of the partnership between DTCC and the decentralized Oracle network.
Chainlink (LINK) shot up by almost 19% in the past 24 hours following the announcement of its partnership with the Depository Trust and Clearing Corporation (DTCC), a financial market infrastructure company based in the United States.
According to the data from CoinMarketCap, the price of LINK, the fifteenth largest crypto asset by market capitalization, has gone up by 19.24% as of 4:49 a.m. ET on Friday. The trading volume of the digital asset shot up by 224.15%, and its market capitalization stood at $9.72 billion.
LINK skyrocketed from $13.57 to $16.58, outperforming all the cryptocurrencies ranking below it, including Bitcoin (BTC), Ether (ETH), Solana (SOL), Toncoin (TON), Dogecoin (DOGE), and Shiba Inu (SHIB).
The surge in LINK price can be attributed to the announcement of the partnership between DTCC and the decentralized Oracle network.
Chainlink and DTCC Partnership
As per a report from DTCC, the team of Chainlink and the world’s largest settlement system completed a pilot program that also involved some of the leading banking institutions in the United States and aimed to increase traditional finance fund tokenization.
The pilot program, known as the Smart NAV Pilot program, was initiated to standardize net asset value (NAV) data spread across various blockchain networks while utilizing Chainlink’s Cross-Chain Interoperability Protocol (CCIP).
The pilot program revealed that by delivering structured data on-chain and establishing standardized roles and processes, foundational data can be integrated into a variety of on-chain applications. The report stated that these applications include tokenized funds and ‘bulk consumer’ smart contracts, which manage data for multiple funds, while adding:
“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.”
Further, the DTCC pointed out that these capabilities might support numerous downstream applications, such as brokerage services, automated data dissemination, and improved access to historical data for funds.
The crypto community on social media platform X was buzzing with excitement with the new post from “DeFiMinty” stating that the Smart NAV pilot program could be a huge deal for Chainlink. While sharing future projections, the X user with more than 50,000 followers stated that large industries could begin tokenizing real-world assets and cross-chain protocols like CCIP could be used in chain abstraction.
In an extended report, the DTCC stated that it “invited asset managers, service providers, and distributors to a series of collaborative workshops to discuss the pilot and evaluate benefits”.
Notably, the prominent banking institutions that participated in the pilot program include American Century Investments, BNY Mellon, Edward Jones, Franklin Templeton, Invesco, JPMorgan, MFS Investment Management, Mid Atlantic Trust d/b/a American Trust Custody, State Street, and US Bank.
next