FTSE Russell partners with Chainlink to publish stock indexes onchain
News Summary
Global index provider FTSE Russell has partnered with Chainlink to publish its benchmark equity and digital asset indexes onchain via its DataLink service across multiple blockchains. This collaboration will make data for the Russell 1000, Russell 2000, Russell 3000 small-cap indexes, the FTSE 100 Index, and several digital asset benchmarks available on-chain. Fiona Bassett, CEO of FTSE Russell, stated that this move is part of the company's strategy to enable “innovation around tokenized assets” and exchange-traded funds (ETFs). This follows FTSE Russell's introduction of digital asset indexes in January through a partnership with SonarX and a 2023 collaboration with Grayscale to launch sector-categorized cryptocurrency market indexes. The article highlights increasing institutional adoption of blockchain technology. Major financial institutions like JPMorgan, Goldman Sachs, BNY Mellon, and Citigroup are exploring blockchain for applications such as tokenization, settlement, and stablecoin integration. Citi noted that a clearer regulatory environment in the U.S., particularly concerning stablecoins, is a primary catalyst for this growing institutional interest.
Background
FTSE Russell is a leading global index provider, with its Russell indexes widely used as benchmarks for U.S. small- and mid-cap stocks, tracked by over $18 trillion in assets globally. Chainlink is a decentralized oracle network that provides smart contracts with external data and connectivity, and its DataLink service aims to deliver institutional-grade market data on-chain. In recent years, as blockchain technology matures and the cryptocurrency market develops, traditional financial institutions have shown significant interest in digital assets and blockchain. Tokenization is seen as a potential method to convert traditional assets (like stocks, bonds, and real estate) into digital tokens tradable on a blockchain, aiming to enhance efficiency and liquidity. U.S. regulators, including the SEC and CFTC, under the Trump administration, have been progressively developing regulatory frameworks for digital assets and stablecoins, seeking to balance innovation with investor protection. This increased regulatory clarity is considered a key factor for further institutional adoption of blockchain.
In-Depth AI Insights
What are the true strategic motivations behind FTSE Russell's partnership with Chainlink? FTSE Russell's collaboration with Chainlink extends beyond superficial