Chainlink’s Groundbreaking Initiative: Revolutionizing Corporate Actions Processing
Chainlink (LINK) has announced a transformative strategy targeting the often burdensome corporate actions processing system. Partnering with 24 leading global financial organizations, Chainlink is set to redefine the way corporate actions are managed, utilizing its advanced oracle technology, blockchain solutions, and artificial intelligence capabilities.
Collaborations with Financial Titans: A Path to Billions in Savings
This strategic alliance, unveiled on Monday, is designed to equip financial institutions with structured and validated data on corporate actions. The data, accessible in multiple languages, will be integrated directly into their systems in mere minutes, a stark contrast to the days-long processes currently in place. This innovation is poised to save the global financial sector billions annually, by minimizing operational disruptions, reducing settlement inaccuracies, enhancing reconciliation speed, and mitigating the operational risks faced by financial institutions.
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Key Players in the Initiative
Significant participants in this groundbreaking project include major financial market infrastructures such as SWIFT, The Depository Trust & Clearing Corporation (DTCC), Euroclear, and SIX. Esteemed asset managers and banks, including UBS, DBS Bank, and BNP Paribas, are also part of this revolutionary endeavor.
Currently, the financial sector incurs an estimated $58 billion annually in processing costs related to corporate actions, with expenses rising by 10% each year. Automation rates remain below 40%, as noted in a recent Citi report, revealing that an average corporate action event involves over 110,000 firm interactions and costs approximately $34 million to process, with many market participants still relying on manual data validation methods.
Looking Forward: Future Developments
In the initial phase of this initiative, Chainlink, alongside SWIFT, Euroclear, and various financial institutions, demonstrated how large language models (LLMs) like OpenAI’s GPT and Google’s Gemini can effectively extract structured data from unstructured corporate action announcements.
Second Phase Enhancements
The second phase saw the deployment of new tools that enhance the speed and accessibility of corporate action data. Within the Chainlink Runtime Environment (CRE), multiple AI model outputs were validated and transformed into ISO 20022-compliant messages. These were then disseminated through the SWIFT Network. The Chainlink Cross-Chain Interoperability Protocol (CCIP) further facilitated the distribution of records across both DTCC’s blockchain ecosystem and a variety of public and private blockchain platforms.
This initiative not only achieved near-perfect data consensus among the evaluated AI models but also showcased multilingual processing capabilities, supporting disclosures in languages such as Spanish and Chinese. As the initiative progresses, the team plans to expand to more complex corporate actions, such as stock splits, while increasing global coverage across additional jurisdictions and currencies. Enhanced privacy and governance controls are also on the agenda to satisfy the operational and compliance requirements of financial institutions worldwide.
Sergey Nazarov, Co-Founder of Chainlink, emphasized the significance of addressing data validation challenges in corporate actions through AI Oracle Networks. He highlighted that this advancement demonstrates how multiple AIs can reach consensus on critical information within a Decentralized Oracle Network.
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