With many institutions showing an interest in creating crypto derivatives in the place of traditional financial instruments, there is a necessity for institutional-grade market data. This data will be integrated into the flexible tools that will underpin the products and services provided by major financial service providers and law firms before they enter the crypto sphere.
Providers of this type of service are termed 'oracles' and the data they provide facilitates higher levels of responsiveness to changing market conditions for smart contracts deployed in financial and legal sectors — providing greater accuracy and reduced risk with up-to-date, real-time crypto-fiat conversion rates at the point of settlement.
To this end, BNC has announced that its data integration with Chainlink, a decentralized oracle network that connects smart contracts with real-world data, will assist the development of new applications across complex financial and legal instruments to meet growing demand from institutions and enterprise.
"Asset managers and investors can expect near-term introduction of decentralized cryptocurrency derivatives and legal contracts," says Chainlink CEO Sergey Nazarov. "Our data collaboration with BNC will catalyze a new era of smart contract applications."
With access to reliable cryptocurrency market data, blockchain-based fintech platforms such as MARKETProtocol and Olympus Labs, who are using Chainlink oracles, will be better positioned to create complex cryptocurrency financial derivatives, including options, swaps, and futures.
In addition, this enables platforms such as OpenLaw, which takes traditional legal contracts and moves them to decentralized, automated smart contracts, to execute and settle fiat currency agreements in cryptocurrency at moment-of-payout exchange rates, mitigating the risk of cryptocurrencies' use in legal settlements as a result of market fluctuations and price volatility.
"Our incorporation of BNC's market data will assist us in our mission to accelerate blockchain adoption in traditional industries," says Nazarov, "including the legal and wealth management sectors."