Chainlink, Swift, and Euroclear Pilot AI-Powered Corporate Actions Platform

Chainlink, an Ethereum-based provider of decentralized oracle networks, has joined forces with leading financial institutions to utilize artificial intelligence (AI) to aggregate corporate data onto a single blockchain, creating a “golden record.”

These financial institutions include Swift, a global messaging network used by banks and institutions, Euroclear, a securities clearing and settlement provider, as well as UBS, Franklin Templeton, Wellington Management, CACEIS, Vontobel, and Sygnum Bank.

Using Chainlink’s decentralized oracles and large language models (LLMs), the initiative aims to address the inefficiencies and inconsistencies that currently plague corporate actions data management, said Sergey Nazarov, co-founder of Chainlink, in his speech at the Sibos conference in Beijing, China, organized by Swift.

Day 1: Reveal how blockchain, oracles, and AI are redefining how financial data is structured.

Day 2: Unveil a blockchain privacy suite helping institutions compliantly transact across the multi-chain economy.

Day 3: …

Day 4: …https://t.co/7S0IizqqqO pic.twitter.com/CSg6SP02Ca

— Chainlink (@chainlink) October 23, 2024

AI and Oracles for Efficient Corporate Actions

The initiative successfully integrated AI and oracles, using Chainlink’s decentralized oracles to validate and deliver critical financial data on-chain, while LLMs like OpenAI’s ChatGPT, Google’s Gemini, and Anthropic’s Claude were employed to process and interpret the data.

Additionally, Chainlink’s Cross-Chain Interoperability Protocol (CCIP) enabled the secure movement of on-chain corporate actions data across various public and private blockchains.

The current inefficiencies in corporate action processes cost regional investor, broker, and custodian businesses approximately $3-5 million each annually, according to the research by ValueExchange and ISSA. Furthermore, 75% of firms continue to manually revalidate custodian and exchange data. Globally, corporate action errors have resulted in losses of over $2 million for business units, with some experiencing losses as high as $43 million.

By eliminating the need for manual reviews and providing near-instant access to accurate data, the new approach using Chainlink oracles can mitigate these costs.

This approach also includes creating a unified, real-time “golden record” of corporate actions data that could be accessed by all market participants.

A “golden record” is a verifiable, synchronized data container that stores financial data across blockchains. It will serve as a single source of truth for all market participants. Oracles ensure this data is updated and synchronized with off-chain systems, making it interoperable across different blockchains. This eliminates the need for duplicated work and enables straight-through processing for corporate action events.

Privacy Suite for Secure Cross-Chain Transactions

During the Sibos conference, Chainlinkg also announced a new suite of privacy-preserving tools designed to facilitate secure and confidential transactions across multiple blockchain networks.

The suite, which includes the Blockchain Privacy Manager, CCIP Private Transactions, and DECO Sandbox, aims to address the growing need for data privacy and regulatory compliance.

Australia and New Zealand Banking Group (ANZ Bank) will be a pioneer in adopting Chainlink’s privacy-preserving capabilities. As part of the Monetary Authority of Singapore’s tokenization initiative, Project Guardian, ANZ Bank will integrate Chainlink’s technology to facilitate cross-chain settlement of tokenized real-world assets (RWAs).

We're excited to announce CCIP Private Transactions, enabling financial institutions to connect private blockchains to the multi-chain economy.

Australia and New Zealand Banking Group (ANZ) will be among the first financial institutions to pilot the capability for cross-chain… pic.twitter.com/1Qmm9nURqz

— Chainlink (@chainlink) October 22, 2024

Chainlink also plans to expand its partnerships and continue to invest in research and development to further enhance its privacy suite.

Following the announcements, Chainlink’s native token LINK spiked to a high of $12.28 on Oct. 22. However, at the time of writing, it has dropped 6% and is currently trading at $11.52.

LINK currently holds a position within the top 15 digital assets, boasting a market capitalization of approximately $7.1 billion.