Tokenized RWA: Chainlink Launches 24/7 Pricing; Aave Adopts It for Loans

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On Wall Street, a stock only trades during weekday business hours. For its part, the blockchain never sleeps.

NEW: Chainlink 24/7 launches at Link:NYC, unlocking always-on pricing for tokenized RWAs. Chainlink 24/7 delivers continuous market data for equities, commodities, and other real-world assets across trading sessions, weekends, and market holidays, enabling: → Prediction markets… pic.twitter.com/imXJLQNbrf

This discrepancy therefore creates a price hole all weekend, including public holidays. Until now, applications had to choose: pause their markets, keep the last known price or tinker with their own method outside of sessions.

However, for a loan protocol, collateral rated at the last price of the week can mask a real fall that occurred during the weekend. Chainlink talks about a solvency risk for DeFi.

For example, a tokenized stock fund serves as collateral against a stablecoin loan. Its price freezes at the end of the week, and a drop that occurs during the weekend remains invisible until the markets reopen.

However, traditional finance defends its schedules. On October 28, 33 companies refused their tokenized shares on an exchange platform.

The mechanism is based on two stages, and the first relies on the 24/5 feeds launched earlier this year, from pre-market to night session.

Then, when the stock market closes, another engine takes over, and the reference then aggregates the quotes from several perpetual platforms on the asset. The price follows derivative trading while the traditional stock market remains closed.

A filter removes outdated data and limits the influence of aberrant prices, while a sewing system manages transitions when sessions change.

Finally, on the delivery side, Data Feeds publish the price directly on-chain for lending protocols. Data Streams serve the perpetual and prediction markets, which require low latency.

This continuous coverage opens up new products. Thus, stock perpetuals can be traded on weekends. Similarly, short prediction markets rely on a time-weighted average price, TWAP, to settle bets while curbing manipulation.

The official launch partner is none other than Aave, the first lending marketplace in DeFi, which boasts a TVL exceeding $34 billion.

Machine-translated from French