In what is a massive development for the asset, Chainlink (LINK) has surged by as much as 20% since its collaboration with US banks on a tokenization pilot concluded yesterday. Indeed, the DTCC, the largest settlement clearinghouse in the United States, announced Chainlink’s participation alongside JPMorgan, Templeton, BNY Mellon, and other prominent banks in the country.
That news has now set the asset’s value skyrocketing. Over the last 24 hours, the token has reached $16 and is up more than 17%, according to CoinMarketCap. Over the last month, it has increased just 24%, showcasing the impact of this week’s announcement on its value increase.
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LINK Soars After Participation With Major US Banks
There is no denying the prominent role that the digital asset industry has played in finance this year. The arrival of Spot Bitcoin ETFs in January saw institutional investors reveal exposure to the asset in droves. Subsequently, many prominent banks are working to utilize the industry’s blockchain and tokenization technology.
Now, the intersection between those institutions and the industry is resulting in big gains for certain tokens. Specifically, Chainlink (LINK) has soared by as much as 20% after its cooperation with US banks in a tokenization pilot concluded yesterday.
Moreover, the data shows an unprecedented surge in interest for the asset. Over the last day, the trading volume for the token has increased by more than 217%, totaling more than $1 billion. The news has thereby shown the importance of crypto market participants working with traditional financial entities.
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The DTCC published a report yesterday on its smart NAV initiative. The project sought to expedite the tokenization of funds through a standardization process for disseminating net asset value through blockchain networks. The project utilized Chainlink’s CCIP Interoperability Protocol in the now-concluded pilot.
As previously stated, Chainlink worked on the project alongside JPMorgan, American Century Investments, BNY Mellon, Franklin Templeton, Edward Jones, INvesco, MFS Investment Management, State Street, Mid Atlantic Trust, and US Bank.
The price increase is a direct result of investor interest as well as an increase in overall confidence. Indeed, the overall adoption of the industry can only be aided by these kinds of collaborations, and traders are embracing them.