Chainlink has launched Chainlink 24/7, which is used for continuous pricing of tokenized real-world assets. It also named Aave as the adopter, stating that this service can provide stock and commodity data on weekends and during market holidays.

• Chainlink Provides 24/7 coverage of stocks, commodities, and other real-world assets, suitable for trading hours, weekends, and holidays.
• Aave is adopting this service for institutional lending that uses tokenized real-world assets as collateral.
• The applications mentioned in the announcement also include market forecasting, perpetual futures, and collateral management.
• CFTC has scheduled a roundtable meeting for December 15th to discuss continuous trading in the derivatives market.

Chainlink announced this service on October 29th at Link : NYC, stating that it can provide market data during trading hours as well as when traditional exchanges are closed. In the announcement, this oracle provider listed institutional lending, predictive markets, and perpetual futures as uses for the new pricing service.

According to the announcement, Aave is adopting this product to provide around-the-clock pricing for institutional lending that uses real-world assets as collateral. Chainlink did not mention a specific Aave market in the post, nor did it list the assets covered by this integration or provide a deployment timeline.

Chainlink 24/7 increased coverage on weekends and holidays

In describing its trading applications, Chainlink indicates that the service supports continuous trading and settlement of predictive markets and perpetual futures. The company also lists collateral management as another application, stating that lending agreements can utilize this data when traditional markets are closed.

Chainlink wrote in the announcement: 'In the global market, there is no closing bell.'

This release follows closely on the company's launch of 24/5 US stock flow data in January this year. An announcement on January 20 stated that the product covers regular trading, pre-market, post-market, and overnight periods, and can be used on over 40 blockchain networks.

For previous products, Chainlink listed information that included not only a single reference price but also buy and sell prices, trading volumes, the latest transaction price, market status indicators, as well as obsolescence metrics. The company stated that developers could utilize these fields for execution logic and risk control.

In January of this year, Chainlink also included synthetic stocks, structured products, and treasuries as further applications for its US stock portfolio, along with lending and derivatives.

The known users of this January product include Lighter, BitMEX, ApeX, and Orderly Network. The announcement from Chainlink links their adoption with stock derivatives and other on-chain markets that operate outside of the standard US stock market trading hours.

Chainlink Document lists risks outside of regular hours

Chainlink The existing documentation on tokenized stocks describes their 24/5 data stream as a calculated main market valuation, which can include specific adjustments by the issuer, such as dividends and corporate actions. The documentation also distinguishes between tokenization tools and underlying stocks or exchange-traded funds.

According to their technical guidelines, extending trading hours and overnight trading may involve fewer data providers and thinner liquidity. Chainlink lists wider bid-ask spreads, less frequent price updates, and larger fluctuations caused by individual trades as characteristics of these periods.

During the overnight period, the 24/5 method in the document uses an exponential moving average to smooth prices. Chainlink indicates that this smoothing process can filter out short-term price fluctuations, but at the same time, it should be noted that during times of rapid market volatility, the reported values may lag behind.

The document states that during regular trading hours, the deepest liquidity is provided, and this is also the main venue for price discovery. Chainlink describes overnight trading as a market with fewer participants and thinner liquidity, and recommends testing control measures during specific time periods before implementation.

For developers using these data streams, the guide recommends checking for outdated data, setting boundaries for acceptable values, and defining fallback behaviors. It also suggests that protocols assess whether the behavior of a particular data stream is suitable for the lending, trading, or clearing functions they plan to support.

Aave and the stock token lenders have used RWA as collateral.

On September 16th, Aave outlined another institutional lending program, announcing the establishment of a RWA hub on Avalanche. Eligible institutions will be able to use USA ₮ to collateralize the tokenization of financial assets for loans. The market within this program will utilize Aave V4, and collateral rules will be set for individual assets.

In the announcement at that time, Aave had not yet disclosed the initial collateral list or the launch date. The categories of assets it intended to include were tokenized government debt, money market funds, and private credit, but these needed to go through governance and risk review.

Chainlink's work in the area of stock tokens predates this latest release. As previously reported by crypto.news, Chainlink launched a price data stream for tokenized stocks targeting Coinbase on August 26th, covering the Nvidia, Meta, Apple, and Alphabet tokens on Base.

These data streams support the valuation of NVDAc, METAc, AAPLc, and GOOGLc, which includes calculations regarding changes in the underlying number of equity represented by the tokens. The product terms of Coinbase restrict these products to eligible non-U.S. investors.

On October 22nd, Robinhood confirmed that eligible holders of Stock Token could borrow stablecoins by using their tokens as collateral through Morpho. Documentation released by Robinhood described that the stock price data stream of Chainlink is updated 24/7, although token transactions on the chain can continue outside of the tokenization period.

The product restrictions of Robinhood exclude U.S. citizens from Stock Tokens. Its documentation outlines different timelines for pricing, token trading, and tokenization arrangements, while the underlying stocks are still subject to the traditional market hours.

CFTC Arranges 24/7 Discussions on Derivatives in December

In the United States, on October 28th, the Commodity Futures Trading Commission announced that it would hold an industry roundtable meeting on December 15th to discuss the feasibility of continuous derivatives trading. The commission stated that this discussion would be based on the public opinions previously solicited.

The discussion topics listed by CFTC include overnight trading, tokenization, staffing, infrastructure, and operational readiness. The announcement described this industry consultation as covering different asset classes, and market integrity and resilience were listed as clear considerations.

Chairman Mike Selig stated in the announcement that the institution will not adopt a one-size-fits-all approach to 24/7 trading.

The roundtable meeting will be held at the CFTC headquarters in Washington, and it will be open to the public with live broadcasting. The organization stated that the agenda, speakers, and registration details will be announced later, and the number of attendees on-site may be limited.