FTSE Russell partners with Chainlink to publish equity and digital asset indexes on blockchain through DataLink. The move aims to provide institutional-grade market data, including Russell indexes and digital asset benchmarks. This collaboration highlights the growing adoption of blockchain technology in the financial sector. Source: Scott Melker.
The Russell indexes, used as benchmarks for US small- and mid-cap stocks, track over $18 trillion in assets globally. FTSE Russell’s CEO sees the move as part of the company’s strategy to foster innovation around tokenized assets and exchange-traded funds. This partnership with Chainlink marks a significant step towards tokenization and standardization in the financial market.
FTSE Russell introduced digital asset indexes in January through a partnership with SonarX, aiming to provide institutional investors with standardized benchmarks for the crypto market. In 2023, the company joined forces with Grayscale to launch five indexes categorizing the cryptocurrency market by sectors such as smart contract platforms and utilities. Institutional adoption of blockchain technology continues to gain traction in the financial industry.
Major financial institutions like JPMorgan, Goldman Sachs, and BNY are exploring blockchain technology for applications like tokenization, settlement, and stablecoin integration. JPMorgan has expanded its tokenization efforts through the Kinexys blockchain, bringing private equity funds onchain. Goldman Sachs and BNY have started offering tokenized money market funds with round-the-clock settlement and onchain ownership tracking.
US banking giant Citigroup noted that growing institutional interest in blockchain is partly driven by a clearer regulatory environment, especially regarding stablecoins. Regulatory clarity in the US could enable greater integration of stablecoins and blockchain technology into the existing financial system. This trend showcases the increasing acceptance and adoption of blockchain in traditional finance.
Read more at Cointelegraph: FTSE Russell, Chainlink Bring Index Data Onchain