Chainlink Price Surges 20% as Tokenization Pilot Sees Wall Street Embrace LINK

Key Takeaways

• Chainlink surged after a successful tokenization pilot with US financial institution DTCC.
• The pilot, involving Wall Street firms, used Chainlink’s technology to bridge traditional finance and blockchain.
• This marks a major milestone towards integrating blockchain into mainstream finance.

The LINK token from Chainlink surged up to 20%  following the announcement  that DTCC, the largest US settlement and clearing house, successfully completed a tokenization pilot.

This pilot involved major Wall Street firms, such as JP Morgan and BNY Mellon, and used Chainlink’s Cross-Chain Interoperability Protocol (CCIP).

This increase sparked the liquidation of $1.68 million in short positions  over the last 24 hours.

For context, that’s more liquidations than many of its larger market cap rivals, such as Dogecoin. The largest memecoin by market cap, has a $22 billion market cap  compared to Chainlink’s $10 billion—more than twice its size. However, short liquidations for Chainlink in the past day exceed the combined liquidations for both short and long positions in DOGE.

The recently concluded DTCC pilot, Smart NAV , aimed to test a method for Wall Street institutions to make mutual fund data, such as prices and rates, available on public networks in a way that could operate across blockchains. This was achieved through CCIP.

According to DTCC, the project wants is to continue “advancing the tokenization of assets”.

The pilot demonstrated that, by delivering structured data on-chain and creating standard roles and processes, foundational data could be put into various on-chain use cases . These included tokenized funds and bulk consumer smart contracts, which hold data for multiple funds.

This can support future industry development and power new uses, such as brokerage portfolio applications. Additional benefits include real-time, more automated, data dissemination and built-in access to historical data.

Chainlink Takes Wall Street Data to Public Blockchains

Wall Street firms have long shown interest in blockchain technology but have often hesitated to operate on public blockchains. In 2023, many of the firms mentioned in Chainlink’s announcement, along with others like Microsoft  and Goldman Sachs, joined the Canton Network .

How are Chainlink and Microsoft Working Together? 
byu/uxsequence  inChainlink 

This network was a pilot, not public, designed for large institutions to test the feasibility of decentralized infrastructure.

The new test with Chainlink is different. This is because its goal is to obtain Wall Street data directly from the institutions and make it available for use by smart contracts and other Real World Asset (RWA) protocols on public networks.

About the Author

Teuta Franjkovic

Teuta is a seasoned writer and editor with more than 15 years of experience. She has expertise in covering macroeconomics and technology as well as the cryptocurrency and blockchain industries. She has worked for several publications as a journalist and editor, including Forbes, Bloomberg, CoinTelegraph, Coin Rivet, CoinSpeaker, VRWorld and Arcane Bear. Teuta began her professional career in 2005, working as a lifestyle writer at Cosmopolitan in Croatia. From there, she branched out to several other publications, covering mainly business and the economy. She then turned her attention to the world of cryptocurrency and blockchain, believing that crypto is among the most important inventions in the history of humanity. Her involvement in fintech began in 2014 and she has since lent her expertise in writing, editing and gathering information about the world of crypto, blockchain, NFTs and Web3. An all-round news hound, mentor, editor, and writer, Teuta enjoys teamwork and good communication. She holds a WSET2 diploma and has a thing for chablis, punkrock music and shoes. She also holds a double MA in Political science and Entrepreneurship.

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