Chainlink has successfully conducted a pilot program that combines artificial intelligence (AI), decentralized oracle technology, and blockchain to create an onchain database of corporate actions. The goal of the pilot was to address the lack of real-time and standardized data surrounding corporate actions. By using data oracles and large language AI models, Chainlink was able to convert unverifiable and unstructured off-chain data into digital data that is available in near real-time. This technology has the potential to significantly reduce manual processes and improve operational efficiency and cost reduction in the financial industry.
Corporate actions, such as mergers, dividends, and stock splits, present a complex challenge due to the unstructured nature of the data. Currently, this information is presented in human-readable formats like PDFs and press releases, resulting in a fragmented ecosystem with poor data timelines, duplicative sources, and extensive data cleaning. These inefficiencies cost investors, brokers, and custodians millions of dollars each year.
The pilot program was completed in collaboration with financial services firms like Franklin Templeton, Swift, and UBS, as well as blockchain networks including Avalanche and ZKsync. Mark Garabedian, Wellington Management’s director of digital assets and tokenization strategy, highlighted the potential of leveraging AI and Chainlink oracles to reduce manual processes and achieve operational efficiency.
Chainlink’s decentralized oracles play a crucial role in connecting blockchain networks to external data sources, including financial markets data. The company has been exploring different ways to utilize oracles in institutional financial markets. In a recent partnership with Taurus, a digital asset infrastructure provider, Chainlink aims to promote the adoption of tokenized assets in institutional markets by improving data transparency, cross-chain mobility, and security.
In addition, Chainlink’s proof of reserve has been added to 21 Bitcoin (BTC), addressing concerns about the backing of the Bitcoin wrapper. This demonstrates the company’s commitment to ensuring the integrity and security of digital assets.
Overall, Chainlink’s pilot program showcases the potential of AI, oracles, and blockchain technology in revolutionizing the accessibility and accuracy of corporate actions data. By leveraging these advancements, the financial industry can streamline processes, reduce costs, and improve data transparency and standardization.