Key Takeaways
- FTSE Russel and Deutsche Börse will soon start publishing stock market data on-chain.
- Financial data giants increasingly rely on Chainlink oracles to connect to public blockchains.
- Blockchain oracles have become increasingly important in the tokenization of real-world assets.
FTSE Russell and Deutsche Börse Group (DBG) are the latest financial data providers looking to plug into the blockchain ecosystem.
Using ChainLink’s DataLink, the companies behind some of the world’s most important stock indices plan to publish real-time market data on-chain, setting the stage for a wave of new, blockchain-powered, digital financial services.
Bringing Market Data on-Chain
To track and respond to real-world markets, smart contract-based systems rely on data feeds known as oracles.
With tokenization on the rise, blockchain oracles have become increasingly important.
The first generation of tokenized assets was a mere representation of real-world vehicles, with all the important information only accessible via traditional interfaces. However, as the concept evolves, increasingly dynamic instruments require an on-chain source of truth for data, such as asset value and share price.
As various providers and aggregators look to make their data available on-chain, ChainLink has emerged as the preferred oracle solution.
Even the U.S. government has tapped the company to help bring economic data, such as GDP, to public blockchains.
Big Finance Selects Chainlink as Oracle Provider
Alongside governments, index providers like S&P, FTSE Russel, and DBG are behind some of the most important data sources relied on by the financial sector. Significantly, all three have forged partnerships with Chainlink in recent months.
Leading the charge, in October, DBG announced plans to make 41 real-time data points from its various trading venues available via DataLink. Not long after, S&P Global said it would use the service to bring its Stablecoin Stability Assessments on-chain.
In the latest move announced by FTSE Russell on Monday, Nov. 3, Chainlink oracles will upload data for indices including the Russell 3000 and FTSE 100, as well as foreign exchange benchmarks relied on by financial institutions around the world.
Considering that S&P already uses DataLink, it may only be a matter of time before the major American indices also receive the blockchain treatment.
When CCN asked about the prospect, a Chainlink spokesperson said: “Our roadmap includes the integration of additional indices and benchmark providers, covering broad asset classes including equities, FX, commodities and credit markets.” However, they would’t confirm any specific integrations.
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James Morales is CCN’s blockchain and crypto policy reporter. He has been working in the news media since 2020, writing about topics such as payments, banking and financial technology. These days, he likes to explore the latest blockchain innovations and the evolving landscape of global crypto regulation.
With an educational background in social anthropology and media studies, James uses his platform as a journalist to explore how new technologies work, why they matter and how they might shape our future.
