Chainlink (LINK) has announced a groundbreaking initiative in collaboration with 24 major financial institutions to transform the corporate actions processing system, which currently costs the global financial industry an estimated $58 billion annually. This partnership, involving giants like SWIFT, The Depository Trust & Clearing Corporation (DTCC), Euroclear, SIX, UBS, DBS Bank, and BNP Paribas, leverages Chainlink's oracle technology, blockchain capabilities, and artificial intelligence (AI) to address inefficiencies in handling events such as dividends, mergers, and stock splits.
The solution achieves 100% data consensus across participants, reducing data processing times from days to minutes. In Phase 1, large language models (LLMs) like OpenAI's GPT and Google's Gemini were used to extract structured data from unstructured corporate action announcements. Phase 2 integrated the Chainlink Runtime Environment (CRE) to validate AI outputs and convert them into ISO 20022-compliant messages for dissemination via the SWIFT Network. Additionally, the Chainlink Cross-Chain Interoperability Protocol (CCIP) enabled the distribution of certified records across DTCC's blockchain ecosystem and other public and private platforms, supporting multilingual processing in languages such as Spanish and Chinese.
According to a Citi report, the average corporate action event involves over 110,000 firm interactions and costs approximately $34 million to process, with more than 75% of institutions still relying on manual data validation. Chainlink's initiative aims to save billions by minimizing disruptions, reducing errors, and lowering operational risks. Sergey Nazarov, Co-Founder of Chainlink, stated: "Addressing the data validation challenges of corporate actions through AI Oracle Networks represents a significant advancement, demonstrating that multiple AIs can achieve consensus on critical information within a Decentralized Oracle Network."
Future plans include expanding to more complex corporate actions like stock splits, increasing global coverage with additional jurisdictions and currencies, and enhancing privacy and governance controls to meet institutional compliance needs. This innovation bridges traditional finance and Web3, potentially enabling tokenized equity ecosystems and scalable infrastructure for smart contracts and legacy systems.
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