On Oct. 22, Chainling announced the results of its industry-wide corporate actions initiative involving major financial players such as Euroclear, Swift, UBS, Franklin Templeton, and Sygnum Bank. Blockchain ecosystem partners included Avalanche, ZKsync, and Hyperledger Besu networks.
The oracle provider successfully demonstrated how artificial intelligence, oracles, and blockchains “can solve a decades-long unstructured data challenge in finance.”
Automating Corporate Actions
The research found that “corporate actions” processing is one of the most complex areas of post-trade operations, with current inefficient processes costing regional businesses $3 to $5 million annually.
Corporate actions are significant events or changes related to securities, such as stocks and bonds, that affect investors. However, automating and standardizing this data could help significantly reduce operational inefficiencies due to errors and manual data processing.
We’re excited to announce the results of an industry-wide corporate actions initiative between Chainlink, Euroclear, Swift, & 6 financial institutions.
We successfully demonstrated how AI, oracles & blockchains can solve a decades-long unstructured data challenge in finance⬇️ pic.twitter.com/4YOT5tX2sr
— Chainlink (@chainlink) October 21, 2024
Chainlink proposed a technical solution that combined three technologies: AI large language models (LLMs), its own decentralized oracle networks (DONs), and multiple blockchains. The AI models it used were OpenAI’s ChatGPT 4, Google Gemini 1.5 Pro, and Anthropic’s Claude 3.5 Sonnet.
It created “unified golden records,” which were verifiable, persistent, and had updatable data containers alongside a two-level consensus system to verify data accuracy.
“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,” said Chainlink co-founder Sergey Nazarov and added:
“This will help financial markets synchronize faster, reduce errors and cut costs.”
The project successfully processed corporate actions across equity and fixed-income securities and achieved 100% consensus on fixed-income events.
“With proper implementation, co-creation allows AI and DLT [digital ledger technology] to amplify each other’s strengths, creating golden records accessible to all in real-time and paving the way for transformative solutions,” commented Stéphanie Lheureux, Director of Digital Assets Competence Center at Euroclear.
In the future, it would need to integrate Swift messaging standards, address liability concerns around AI-generated outputs, and handle more complex corporate actions, the report concluded.
LINK Price Outlook
Chainlink’s native token, LINK, is trading flat on the day at $11.85 following the big market retrace on Oct. 21. LINK has moved very little over the past month, gaining less than 4% despite the ongoing integration with the ecosystem and traditional finance.
In late September, Chainlink partnered with major Australian bank ANZ in a real-world asset (RWA) tokenization initiative. Moreover, the asset remains down 78% from its May 2021 all-time high of $52.70.
