Chainlink has announced a groundbreaking initiative aimed at revolutionizing the corporate actions processing system, forming a partnership with 24 leading organizations within the financial sector. This collaboration seeks to utilize Chainlink’s advanced oracle technology, blockchain capabilities, and artificial intelligence (AI) to enhance the notoriously cumbersome and costly processes associated with corporate actions.
The new Chainlink-powered solution is designed to allow financial institutions to access structured and validated corporate actions data in multiple languages in a matter of minutes, significantly cutting down the current processing time, which often extends to days. This swift delivery is anticipated to save the global financial industry billions of dollars annually by minimizing disruptions, reducing errors during settlement, expediting reconciliations, and lowering the operational risks that financial institutions typically face.
Key participants in this initiative include major financial infrastructures such as SWIFT, The Depository Trust & Clearing Corporation (DTCC), Euroclear, and SIX. Major asset managers and banks, including UBS, DBS Bank, and BNP Paribas, are also on board.
The financial industry currently incurs an estimated annual cost of $58 billion related to corporate actions processing, with expenses rising by 10% each year. A recent report by Citi revealed that the average corporate action event demands over 110,000 firm interactions and costs about $34 million to process. A significant portion of market participants still relies on manual data validation, highlighting a stark need for modernization.
The initiative consists of multiple phases. In the first phase, tutorials showcased how large language models (LLMs)—including OpenAI’s GPT and Google’s Gemini—could effectively extract structured data from unstructured corporate action announcements. The second phase focused on enhancing the speed and accessibility of corporate actions data. Through the Chainlink Runtime Environment (CRE), outputs from various AI models were validated and converted into ISO 20022-compliant messages. These were then disseminated via the SWIFT Network.
Moreover, the initiative employed Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to distribute these records across DTCC’s blockchain ecosystem as well as various public and private blockchain platforms. Remarkably, the collaboration achieved nearly 100% data consensus among the AI models evaluated, showcasing multilingual processing capabilities to accommodate disclosures in languages such as Spanish and Chinese.
Looking ahead, Chainlink plans to expand this model to handle more complex corporate actions, like stock splits, while also increasing global coverage by incorporating additional jurisdictions and currencies. Enhanced privacy and governance controls are also set to be introduced to meet the operational and compliance needs of financial institutions around the world.
Sergey Nazarov, Co-Founder of Chainlink, emphasized the importance of addressing data validation challenges within corporate actions through AI Oracle Networks. He remarked that this development signals a significant advancement, demonstrating how multiple AIs can reach consensus on critical information within a Decentralized Oracle Network.
As for Chainlink’s market performance, its price is currently trading just above $21, signalling continued investor interest in its innovative approach to addressing longstanding challenges within the financial sector.
