Chainlink, an Ethereum-based provider of decentralized oracle networks, has teamed up with leading financial institutions. Together, they aim to leverage artificial intelligence (AI) to consolidate corporate data onto a single blockchain, creating a “golden record.”
The financial institutions involved include Swift, Euroclear, UBS, Franklin Templeton, Wellington Management, CACEIS, Vontobel, and Sygnum Bank. Each of these organizations plays a key role in this initiative.
Addressing Data Inefficiencies with AI and Decentralized Oracles
During the Sibos conference in Beijing, Sergey Nazarov, co-founder of Chainlink, discussed the project’s objectives. He explained how they plan to solve inefficiencies and inconsistencies in managing corporate actions data. To achieve this, Chainlink is combining decentralized oracles with large language models (LLMs) like ChatGPT, Google’s Gemini, and Anthropic’s Claude. This combination will validate and deliver key financial data on-chain while interpreting it accurately.
In addition, Chainlink’s Cross-Chain Interoperability Protocol (CCIP) ensures secure data transfer across multiple public and private blockchains. This feature allows for reliable, real-time data movement between private networks on the public CCIP network.
Reducing Costs and Creating a Single Source of Truth
According to research by ValueExchange and ISSA, inefficiencies in corporate actions processes cost businesses between $3 to $5 million each year. Moreover, 75% of firms still manually revalidate custodian and exchange data. These errors have led to losses of over $2 million for business units globally, with some losses reaching up to $43 million.
To address this, Chainlink’s new approach aims to eliminate manual reviews and offer near-instant access to accurate information. By using decentralized oracles, they can create a unified “golden record”—a verifiable and synchronized container of financial data. This record serves as a reliable source of truth that all market participants can access. Oracles ensure it stays updated and synchronized with off-chain systems, reducing duplicated work and streamlining processes.
Privacy Suite for Secure Cross-Chain Transactions
Chainlink also introduced a new privacy suite at the Sibos conference. This suite includes the Blockchain Privacy Manager, CCIP Private Transactions, and DECO Sandbox. It aims to offer secure and confidential transactions across various blockchain networks. This initiative addresses the rising demand for data privacy and compliance.
Australia and New Zealand Banking Group (ANZ) has already adopted Chainlink’s privacy solutions. As part of the Monetary Authority of Singapore’s tokenization project, Project Guardian, ANZ Bank plans to use Chainlink’s technology for cross-chain settlement of tokenized real-world assets (RWAs).
LINK Price Spike Amid Announcements
Following these announcements, Chainlink’s native token, LINK, saw a price increase. It peaked at $12.28 on October 22 but has since decreased by 6%, trading at $11.52. Currently, LINK holds a spot among the top 15 digital assets, with a market capitalization of around $7.1 billion.
The post Chainlink, Swift, and Euroclear Pilot AI-Powered Corporate Actions Platform appeared first on Cryptonews.
