Oct 22, 2024
6thTrade
Chainlink is making a bold move to reshape how the financial world handles corporate actions like mergers, dividends, and stock splits. These events, often mired in fragmented and outdated processes, are now set to become more accessible and standardized, thanks to a new initiative launched by Chainlink in collaboration with major industry players such as Euroclear, Swift, and Franklin Templeton.
The project, unveiled on Monday, aims to solve a long-standing issue: the lack of standardized, real-time data for corporate actions. In markets like Europe, this data is notoriously disjointed, making it difficult for companies and investors to efficiently access and process vital information. This inefficiency comes at a cost, with businesses losing millions every year due to errors and the time-consuming nature of manual data processing.
Chainlinkâs co-founder, Sergey Nazarov, highlighted the significance of this initiative: "Turning disconnected corporate actions data into unified 'golden records' that hundreds of market participants can rely on as a single source of truth is a huge step forward. This will help financial markets synchronize faster, reduce errors, and cut costs."
The first phase of the initiative focuses on equity and fixed-income securities data from six European countries. Chainlink has integrated its decentralized oracles with advanced AI models like OpenAI's ChatGPT, Google's Gemini, and Anthropic's Claude. This collaboration extracts data from various sources and transforms it into structured "Golden Records" that meet global financial standards, such as ISO 20022 and Securities Market Practice Group (SMPG) guidelines. Using Chainlinkâs Cross-Chain Interoperability Protocol (CCIP), this data is then distributed securely across different blockchain networks.
Looking ahead, Chainlink plans to expand the initiative by integrating this standardized data framework with existing financial systems, including Swift messaging standards. This could pave the way for widespread adoption across the industry, streamlining processes and reducing costs on a larger scale.
The initiative has already attracted some of the biggest names in the financial sector, including Euroclear, UBS, Franklin Templeton, Wellington Management, and Sygnum Bank. Blockchain partners such as Avalanche {{AVAX}}, ZKsync, and Hyperledger Besu are also contributing to the project's success.
Mark Garabedian, Wellington Managementâs director of digital assets and tokenization strategy, emphasized the impact this innovation could have: "By leveraging AI and Chainlink oracles to interpret and standardize high-value unstructured data, we can significantly reduce manual processes, driving greater operational efficiency and cost savings."
As the financial world continues to evolve, Chainlink's initiative could set a new standard for how corporate actions are handledâbringing transparency, accuracy, and efficiency to the forefront. With the potential to reshape the industry, this project marks an exciting step forward in the marriage of AI, blockchain, and financial markets.
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