Chainlink joined forces with Euroclear and Swift to address the complexities of unstructured data in the financial sector. This initiative aims to streamline the handling of corporate actions data through advanced technologies such as artificial intelligence (AI), decentralized oracles, and blockchain.

A Collaborative Effort

The project unites prominent market participants like UBS, Franklin Templeton, Wellington Management, CACEIS, Vontobel, and Sygnum Bank, all of whom face challenges in managing corporate actions. According to Chainlink, the initiative leverages the latest advancements in AI and blockchain to tackle the inefficiencies associated with real-time data related to corporate actions.

Chainlink’s decentralized oracles play a crucial role in this effort. They are designed to provide a unified source of truth for corporate actions data, ensuring that all stakeholders—ranging from custodians to asset managers—have access to accurate and standardized information without the need for manual validation. 

This initiative reportedly has the potential to save regional investors, brokers, and custodians an estimated $3-5 million annually by eliminating redundant processes.

Harnessing AI for Real-Time Data

To achieve these goals, the initiative has successfully demonstrated the integration of large language models (LLMs), such as OpenAI’s ChatGPT-4o, Google’s Gemini 1.5 pro, and Anthropic’s Claude 3.5 sonnet, with Chainlink's technology. 

Per reports, this combination facilitates near real-time distribution of corporate actions events across multiple blockchain networks, enhancing efficiency and accuracy.

The program has shown that LLMs, in conjunction with Chainlink’s decentralized oracles, can provide timely updates about corporate actions. This innovation reportedly addresses longstanding inefficiencies caused by inconsistent data formats, terminologies, and communication methods within the financial industry.

Expanding the Scope of Unified Data

While corporate actions are the initial focus of this initiative, the concept of a unified golden record can be applied to various aspects of financial data management. Future phases may include enhancements in areas such as private asset valuation, risk management, and legal identifiers. 

The integration of established Swift messaging standards in the next phase will ensure that these on-chain unified records are compatible with existing portfolio management systems used by financial institutions.

Recent Developments

In parallel, Chainlink launched CCIP Private Transactions ON oCT. 22. This advanced feature allows financial institutions to maintain data confidentiality while conducting cross-chain transactions, thereby addressing privacy concerns that have hindered broader blockchain adoption.

Further, last September, 21Shares US LLC integrated Chainlink’s Proof of Reserve on Ethereum’s mainnet to boost transparency for its Core Ethereum ETF (CETH). This integration provides clear visibility into the Ethereum reserves backing the ETF, enhancing investor confidence.

Similarly, last July, Bancolombia Group-backed Wenia partnered with Chainlink to integrate its Proof of Reserve technology into its stablecoin, COPW. This partnership aims to improve the transparency and security of COPW, further solidifying Chainlink’s position as a leader in data solutions for the financial sector.