Chainlink Collaborates with Finance Giants on AI and Oracles Project

On October 22, Chainlink revealed the outcomes of its comprehensive corporate actions initiative, which involved prominent financial institutions such as Euroclear, Swift, UBS, Franklin Templeton, and Sygnum Bank. The blockchain ecosystem partners included Avalanche, ZKsync, and Hyperledger Besu networks.

The oracle provider successfully showcased how artificial intelligence, oracles, and blockchain technology “can address a long-standing unstructured data challenge in the finance sector.”

Streamlining Corporate Actions

The research indicated that processing “corporate actions” is one of the most intricate areas of post-trade operations, with current inefficient methods costing businesses in the region between $3 and $5 million each year.

Corporate actions refer to critical events or changes concerning securities, like stocks and bonds, that impact investors. However, by automating and standardizing this data, organizations could drastically minimize operational inefficiencies stemming from manual data handling and errors.

We’re thrilled to share the results of a collaborative corporate actions initiative involving Chainlink, Euroclear, Swift, and six financial institutions.

We effectively demonstrated how AI, oracles, and blockchains can address a decades-old unstructured data issue in finance⬇️ pic.twitter.com/4YOT5tX2sr

— Chainlink (@chainlink) October 21, 2024

Chainlink presented a technical solution that integrated three technologies: AI large language models (LLMs), its proprietary decentralized oracle networks (DONs), and various blockchains. The AI models employed included OpenAI’s ChatGPT 4, Google Gemini 1.5 Pro, and Anthropic’s Claude 3.5 Sonnet.

This approach resulted in the creation of “unified golden records,” which are verifiable, persistent, and include updatable data containers, complemented by a two-level consensus system to ensure data precision.

“Transforming disparate corporate actions data into unified ‘golden records’ that can be relied upon as a definitive, singular source of truth by numerous market participants is a significant advancement,” remarked Chainlink co-founder Sergey Nazarov, further stating:

“This will facilitate faster synchronization in financial markets, reduce mistakes, and lower costs.”

The initiative successfully processed corporate actions for equity and fixed-income securities, achieving 100% consensus on fixed-income events.

“Through effective implementation, co-creation enables AI and DLT [digital ledger technology] to enhance each other’s capabilities, resulting in golden records that are accessible to all in real time and laying the groundwork for groundbreaking solutions,” stated Stéphanie Lheureux, Director of the Digital Assets Competence Center at Euroclear.

Looking ahead, the initiative will require the integration of Swift messaging standards, addressing liability concerns regarding AI-generated outputs, and tackling more complicated corporate actions, concluded the report.

LINK Price Prediction

Chainlink’s native cryptocurrency, LINK, is currently trading at $11.85, remaining stable following the significant market pullback on October 21. Over the past month, LINK’s price has fluctuated slightly, gaining under 4% despite ongoing integrations with the broader ecosystem and traditional finance.

In late September, Chainlink collaborated with major Australian bank ANZ on a real-world asset (RWA) tokenization project. Furthermore, LINK is down 78% from its peak of $52.70 back in May 2021.