Chainlink recently revealed significant advancements in its initiative aimed at updating corporate actions processing. Together with prominent financial entities such as Euroclear and SWIFT, Chainlink has developed a blockchain-based solution to address the extensive inefficiencies in corporate actions that currently amount to $58 billion in costs each year. This venture highlights the necessity for modernization in corporate actions reporting, which historically depends heavily on manual processes. Automation currently captures less than 40% of actions, further amplifying delays and costs.
The second phase of this collaborative project has shown remarkable progress. Achieving nearly unanimous agreement among various AI models indicates a robust level of reliability in the data processing. This phase has expanded to involve 24 global institutions, including major players like DTCC and UBS. The solution effectively integrates advanced technologies such as Chainlink’s oracle network and artificial intelligence to convert fragmented disclosures into real-time, standardized data. This makes the information not only faster to access but also multilingual, as it accommodates languages like Spanish and Chinese.
In terms of efficiency, this new system markedly reduces time by delivering validated data directly into existing financial systems in a matter of minutes rather than days. Moreover, it supports tokenized equities through unified records that bridge blockchain and traditional infrastructures.
The future trajectories of this initiative aim to encompass a wider range of corporate actions beyond simply dividends and mergers, like stock splits. It also seeks to extend its reach to more jurisdictions and currencies. To further enhance compliance and security for financial institutions, stronger governance and privacy measures are set to be introduced, addressing the growing needs for regulatory adherence in the financial landscape.
Overall, the initiative underscores the potential of distributed ledger technology to promote transparency, connectivity, and efficiency across the financial sector, aligning new solutions with the established systems that institutions already rely upon.