In a significant step towards the integration of traditional finance with blockchain technology, Chainlink announced on Tuesday the launch of its 24/5 US Equities Streams. This innovative service aims to channel market data for tokenized US stocks and exchange-traded funds (ETFs) into blockchain networks, pushing the boundaries of how the approximately $80 trillion US equities market can operate.
The introduction of these data streams marks a crucial advancement, as they provide continuous market information beyond the traditional trading hours of 9:30 AM to 4:00 PM ET. This latest offering from Chainlink is designed to support eight prominent crypto platforms, including BitMEX, Lighter, and ApeX, among others, enabling diverse trading strategies involving tokenized stock assets.
Chainlink’s infrastructure facilitates these market data streams across more than 40 blockchains, leveraging the Chainlink Data Standard. As the demand for round-the-clock trading intensifies, this launch positions Chainlink at the forefront, as more crypto platforms seek to provide trading services that extend beyond conventional market hours.
Crypto Platforms Eye Extended Trading Hours
The competitive landscape for 24/7 trading solutions is heating up. The New York Stock Exchange recently revealed plans to build a blockchain platform, which would allow trading of tokenized stocks and ETFs around the clock. This follows other institutions like Kraken, which has offered 24/5 access to CME-based markets since last year, catering to commodities and equity indexes like gold and oil.
Furthermore, BitMEX has recently ventured into 24/7 Equity Perps trading, allowing access to major assets, including Amazon, Apple, and Tesla, among others. The race is on for crypto platforms to provide users with unprecedented access to trading opportunities in a space that traditionally lacked the flexibility of continuous operations.
Opening Doors to Innovative Financial Products
Chainlink’s oracle technology plays a vital role in this evolution by integrating off-chain data into blockchain smart contracts, which can now include bid and ask prices, trading volumes, and status flags. Prior to this initiative, many on-chain solutions typically offered only single price points during usual trading hours, leaving significant gaps that hindered market calibration at all times.
The new 24/5 streams are expected to empower various financial products, enabling yield and exposure strategies through structured products and vaults. They also open avenues for prediction and lending markets revolving around tokenized equities, solving a significant limitation faced by traders who interact with on-chain products based on traditional equities.
Additionally, regulatory bodies such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are weighing the options of facilitating these extended trading hours, indicating a meaningful shift in market structure in the realm of finance.
Chainlink remarked that this launch is “just the beginning,” inviting developers and platforms to explore the possibilities of accessing 24/7 market data coverage going forward. As the lines between digital and traditional finance continue to blur, it is evident that innovations such as Chainlink’s 24/5 US Equities Streams are setting the stage for a transformative era in trading.
