FTSE Russell and Chainlink Partner to Publish Key Indexes on Blockchain

• FTSE Russell and Chainlink collaboration publishes equity and digital asset indexes on blockchain via DataLink.

• This initiative expands public access to trusted market benchmarks, supporting tokenized assets and ETFs.

• Russell indexes underpin over $18 trillion in assets, with digital benchmarks from partnerships like SonarX and Grayscale included.

Discover the FTSE Russell Chainlink partnership revolutionizing blockchain index data. Explore how onchain publishing boosts institutional access and innovation in crypto markets today.

What is the FTSE Russell Chainlink Partnership?

The FTSE Russell Chainlink partnership involves the global index provider FTSE Russell collaborating with Chainlink to bring its benchmark equity and digital asset indexes onchain. Announced on Monday, this initiative uses Chainlink’s DataLink service, powered by its oracle network, to make data from major indexes like the Russell 1000, Russell 2000, Russell 3000, and FTSE 100 available across multiple blockchains. This step democratizes access to high-quality, institutional-grade market information, fostering greater transparency and efficiency in financial markets.

The partnership will place key FTSE Russell and Russell index data on blockchains, expanding public access to reliable market information.

Global index provider FTSE Russell has partnered with Chainlink to publish its benchmark equity and digital asset indexes onchain, highlighting how blockchain technology is being used to deliver institutional-grade market data.

On Monday, Chainlink announced that data for the Russell 1000, Russell 2000 and Russell 3000 small-cap indexes, the FTSE 100 Index and several digital asset benchmarks will be made available across multiple blockchains via DataLink, an institutional-grade publishing service powered by the oracle network.

Source: Scott Melker

The Russell indexes, widely used as benchmarks for US small- and mid-cap stocks, are tracked by more than $18 trillion in assets globally.

Fiona Bassett, CEO of FTSE Russell, said the move is part of the company’s strategy to enable “innovation around tokenized assets” and exchange-traded funds. 

FTSE Russell introduced a series of digital asset indexes in January through a partnership with SonarX, aiming to provide institutional investors with standardized benchmarks for the crypto market.

In 2023, FTSE Russell partnered with digital asset manager Grayscale to launch five indexes that categorize the cryptocurrency market by sectors, including smart contract platforms, utilities and consumer products.

How Does the FTSE Russell Chainlink Partnership Advance Blockchain in Finance?

This partnership marks a significant advancement in blockchain adoption by integrating trusted financial data directly onto decentralized networks, reducing reliance on traditional intermediaries. With the Russell indexes supporting over $18 trillion in global assets, onchain publication via Chainlink ensures real-time, tamper-proof access for developers and institutions building tokenized securities or DeFi applications. According to Fiona Bassett, CEO of FTSE Russell, this aligns with broader goals to spur innovation in tokenized assets and ETFs, potentially unlocking new investment vehicles. Earlier efforts, such as the 2023 collaboration with Grayscale, have already segmented the crypto market into actionable indexes, while the January SonarX tie-up standardized digital asset benchmarks, demonstrating FTSE Russell’s growing expertise in hybrid financial systems. This onchain shift not only enhances data reliability but also supports faster settlement times and broader market participation, as evidenced by increasing institutional interest in blockchain solutions.

Frequently Asked Questions

What indexes are included in the FTSE Russell Chainlink partnership?

The partnership covers major equity benchmarks like the Russell 1000, Russell 2000, Russell 3000, and FTSE 100, alongside digital asset indexes developed with partners such as SonarX and Grayscale. These indexes provide standardized tracking for small- and mid-cap stocks and crypto sectors, including smart contracts and utilities, ensuring comprehensive market coverage for institutional users.

How does onchain index data from FTSE Russell benefit investors?

Onchain index data from FTSE Russell via Chainlink offers investors secure, transparent access to reliable benchmarks 24/7, enabling seamless integration into blockchain-based products like tokenized funds. This setup minimizes settlement risks and supports real-time decision-making, particularly in volatile crypto markets where timely information is crucial for portfolio management.

Key Takeaways

• Enhanced Data Accessibility: The FTSE Russell Chainlink partnership brings $18 trillion in benchmarked assets onchain, democratizing institutional-grade information for global users.
• Innovation in Tokenization: By supporting tokenized assets and ETFs, this initiative paves the way for new financial products, as highlighted by FTSE Russell’s CEO.
• Broad Institutional Momentum: Aligns with trends from firms like JPMorgan and Goldman Sachs, urging investors to explore blockchain for efficient market operations.

Conclusion

The FTSE Russell Chainlink partnership represents a pivotal step in merging traditional finance with blockchain technology, providing onchain access to essential equity and digital asset indexes for enhanced market transparency. Building on prior collaborations with SonarX and Grayscale, this development underscores FTSE Russell’s commitment to standardized crypto benchmarks and tokenized innovations. As institutional adoption accelerates, with players like JPMorgan advancing onchain private equity and Citigroup noting regulatory tailwinds for stablecoins, the financial landscape is poised for greater efficiency. Investors should monitor these evolutions to capitalize on emerging opportunities in blockchain-integrated markets.

Institutional Adoption of Blockchain Technology Gains Traction

FTSE Russell is among several major financial institutions exploring blockchain technology for applications such as tokenization, settlement and stablecoin integration. JPMorgan has expanded its tokenization efforts through its private Kinexys blockchain, bringing private equity funds onchain.

Goldman Sachs and BNY have also begun offering tokenized money market funds for clients, featuring round-the-clock settlement and onchain ownership tracking. 

In April, US banking giant Citigroup said the growing institutional interest in blockchain is being fueled partly by a clearer regulatory environment, particularly regarding stablecoins.

“The main catalyst for their greater acceptance may be regulatory clarity in the US, which could enable greater integration of stablecoins specifically, and blockchain more widely, into the existing financial system,” Citi said.