Today Chainlink announced the results of an industry initiative combining technological advancements in AI, oracles, and blockchain to structure and standardized corporate actions data onchain. Participants include major market infrastructures Euroclear and Swift, as well as major financial institutions – UBS, Franklin Templeton, Wellington Management, CACEIS, Vontobel, Sygnum Bank – and three blockchain ecosystem partners – Hyperledger Besu, Avalanche, and ZKsync.
The initiative successfully demonstrates how Chainlink’s decentralized oracles can be utilized with large language models (LLMs) – specifically OpenAI’s GPT-4o, Google’s Gemini 1.5 Pro, and Anthropic’s Claude 3.5 Sonnet – to validate and deliver critical financial data onchain. Chainlink’s Cross-Chain Interoperability Protocol (CCIP) was then used to securely move the onchain corporate actions data between the three blockchain networks.
As the industry-leading decentralized computing platform, Chainlink has securely enabled over $16 trillion in transaction value and delivered more than 15 billion verified messages throughout the blockchain ecosystem. As illustrated by Swift’s proof of concept, CCIP allows traditional financial institutions to interact with tokenized assets throughout the multi-chain economy using their existing infrastructure and messaging standards.
CCIP, Data Feeds, and Proof of Reserve (PoR) comprise Chainlink’s stack of essential tokenization infrastructure that allows tokenized assets to function as continuously updated unified golden records. Over the past year, Chainlink has emerged as the preferred way for top financial institutions including the DTCC, Fidelity International and Sygnum to deliver key net asset value (NAV) and reserve data for tokenized funds onchain.
This latest initiative successfully demonstrates how LLMs and Chainlink oracles provide a novel solution to current issues in corporate action processes that cost regional investor, broker, and custodian businesses up to $5 million each annually.
With 75% of firms re-validating custodian and exchange data manually, standardizing corporate actions data onchain as a unified golden record solves costly inefficiencies stemming from inconsistencies in structure, format, terminology, timeline, medium, and standards for dissemination. This mitigates the need for manual reviews by providing all participants from custodians to asset managers with real-time accurate, uniform data.
In an official statement, Chainlink co-founder Sergey Nazarov underscored the synergistic power of Chainlink oracles and AI to enhance the global financial system.
“Turning various pieces of disconnected corporate actions data into unified golden records that can then be relied on by hundreds of market participants as a definitive, single source of truth is truly a huge step forward in how financial markets deal with critical and error-prone data,” he said.
“With proper implementation, co-creation allows AI and DLT to amplify each other’s strengths, creating golden records accessible to all in real time and paving the way for transformative solutions,” added Stéphanie Lheureux, Euroclear’s Director of Digital Assets Competence Center.
“CACEIS fully supports industry efforts to create a blockchain-based ‘golden source’ of information to streamline corporate action management with data distributed in real time to all market participants,” said Younes Ayouaz, Group Head of Project & Transformation – Custody and Cash Clearing Business Unit at CACEIS. A premier global asset servicing group with $5.2 trillion in assets under custody, CACEIS custodies assets backing Spiko’s money market funds, which leverage Chainlink to bring NAV data onchain.
“By leveraging AI and Chainlink oracles to interpret, standardize, and deliver high-value unstructured data, we can dramatically reduce the manual processes required, enabling significant potential operational efficiency and cost reduction while ensuring that data flows through the system with the required levels of accuracy and transparency,” said Mark Garabedian, Director, Digital Assets & Tokenization Strategy at Wellington Management.
Beyond corporate actions, future use cases for Chainlink-powered unified golden records include the valuation of private assets, risk management data, legal identifiers, security-level data, and more. An official announcement outlines the initiative’s next phase, which “will use established Swift messaging standards to make onchain unified golden records interoperable with and consumable by existing mission-critical portfolio processing and management systems utilized by financial institutions.”
Read the full report: Transforming Asset Servicing With AI, Oracles, and Blockchains.