Chainlink has teamed up with SIX Group, the operator of the Swiss and Spanish national exchanges, to put over 2 trillion worth of European equities data on the blockchain. The partnership is a fusion of traditional exchange infrastructure and blockchain oracle networks, with the goal of providing smart contracts, decentralized finance, and tokenized asset platforms with verified securities data. For institutional crypto and Web3 players, the project is a solution to a fundamental problem: the gap between regulated capital markets and on-chain applications.
Integrating Exchange Data With Blockchain Oracles
In addition to equities pricing and reference data from the SIX Swiss Exchange and the BME Exchange in Spain, the collaboration will also enable the delivery of other data via Chainlink’s decentralised oracle network, which forms the technical basis of the partnership. Oracles are software that act as a bridge between blockchains and external data sources, allowing smart contracts to access off-chain data in a trustless manner and without changing their deterministic nature.
Because the data is coming from a regulated exchange operator, the data streams are set up to align with the specifications of compliance and reliability standards that the main users of the data, asset managers, custodians, and fintech developers, require.
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Advancing Real-World Asset Tokenization
Access to verified European equities data opens up new opportunities for real-world asset tokenization. Accurate on-chain pricing and corporate actions data are the lifeblood of tokenized stocks, index products, and collateralized lending operations in DeFi protocols. Faucet developers with such data, and they might come up with some innovative securities applications: referencing blue-chip stocks, automating net asset value computations, or managing structured products with transparent inputs, to name a few.
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Balancing Opportunities With Operational Challenges
Although the collaboration is spreading the Web3 databases with institutional-grade info wealth, there are still practical side implementation issues. Data latency, the frequency of updates, and licensing terms will need to be consistent with the capital markets requirements.
Also, a certain level of regulatory clarity regarding the redistribution of market data and the legal status of tokenized equities will be necessary for adoption. Oracle security issues, data tampering risks, and the reliability of smart contracts will need constant monitoring, too. Moreover, on-chain data alone cannot transfer shareholder rights if the relevant legal frameworks are not in place.
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