FTSE Russell Teams Up with Chainlink to Offer On-Chain Stock Indexes

Global index provider FTSE Russell has announced a collaboration with Chainlink to publish its benchmark equity and digital asset indexes on the blockchain. This partnership emphasizes the increasing role of blockchain technology in delivering high-quality market data for institutional investors.

Key Takeaways

FTSE Russell has partnered with Chainlink to publish its equity and digital asset indexes on the blockchain.
Chainlink's DataLink service will make key indexes available across multiple blockchains.
The Russell indexes represent over $18 trillion in assets globally.
The collaboration is aimed at promoting innovation in tokenized assets and ETFs.
Growing institutional interest in blockchain is supported by clearer regulatory frameworks.

FTSE Russell partners with Chainlink to publish stock indexes onchain

On Monday, Chainlink revealed that it will provide data for popular indexes, including the Russell 1000, Russell 2000, Russell 3000 small-cap indexes, the FTSE 100 Index, and several digital asset benchmarks. This data will be accessible across various blockchains through DataLink, a publishing service designed for institutional use that leverages Chainlink's oracle network.

Source: Scott Melker

The Russell indexes serve as benchmarks for small- and mid-cap stocks in the U.S., being tracked by over $18 trillion in global assets. Fiona Bassett, CEO of FTSE Russell, noted that this initiative aligns with the company’s goal to foster "innovation around tokenized assets" and exchange-traded funds.

Earlier this year, FTSE Russell launched a series of digital asset indexes in collaboration with SonarX, aimed at providing institutional investors with effective benchmarks for the cryptocurrency market. In 2023, the company teamed up with digital asset manager Grayscale to introduce five indexes categorizing the cryptocurrency sector, encompassing areas like smart contract platforms, utilities, and consumer products.

Growing Institutional Interest in Blockchain Technology

FTSE Russell is not alone in exploring blockchain technology; several significant financial institutions are investigating its use for applications such as tokenization, settlement, and stablecoin integration. Recently, JPMorgan enhanced its tokenization initiatives with its private Kinexys blockchain, facilitating the on-chain integration of private equity funds.

Goldman Sachs and BNY Mellon have also initiated the offering of tokenized money market funds for their clientele, providing continuous settlement and on-chain ownership tracking. In April, Citigroup highlighted that the increasing institutional enthusiasm for blockchain is partially driven by a clearer regulatory landscape, especially concerning stablecoins.

"The main catalyst for their wider acceptance could be regulatory clarity in the U.S., potentially allowing for greater integration of stablecoins in particular, and blockchain in general, into the existing financial system," Citi stated.