Chainlink has piloted an onchain database of corporate actions using artificial intelligence and decentralized oracle technology, according to an Oct. 21 announcement.
The pilot seeks to harness “the combined advancements in AI, oracles, and blockchain technology to address the lack of real-time and standardized data around corporate actions,” Chainlink said.
“We found that by using data oracles paired with multiple [large language AI models], we were able to source unverifiable, unstructured, and often unreachable off-chain data and convert it autonomously into digital data that is available in near real-time,” Chainlink said.
Source: Chainlink
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Information on corporate actions — such as mergers, dividends and stock splits — “present[s] one of the most complex unstructured data problems in the financial world,” Chainlink said in a report detailing the initiative.
The data is “initially presented in human-readable formats like PDFs and press releases […] leading to a fragmented ecosystem characterized by poor data timelines, duplicative sources, and extensive data cleaning,” according to the report.
These inefficiencies cost investors, brokers and custodians approximately $3 million to $5 million each every year, according to Chainlink.
Chainlink completed the pilot alongside financial services firms — including Franklin Templeton, Swift, and UBS — and blockchain networks such as Avalanche and ZKsync, according to the announcement.
“By leveraging AI and Chainlink oracles, […] we can dramatically reduce the manual processes required, enabling significant potential operational efficiency and cost reduction,” said Mark Garabedian, Wellington Management’s director of digital assets and tokenization strategy.
Decentralized oracles such as Chainlink connect blockchain networks to external data sources, including financial markets data.
Chainlink has been exploring various ways oracles can aid institutional financial markets.
On Oct. 2, Chainlink partnered with Taurus, a digital asset infrastructure provider, to facilitate institutional tokenization.
The partnership aims to promote the adoption of tokenized assets in institutional markets by focusing on improving data transparency, cross-chain mobility and security.
On Sept. 23, the parent company of cryptocurrency asset manager 21Shares, 21.co, announced that it is adding Chainlink’s proof of reserve to 21 Bitcoin (BTC) to address potential concerns about the Bitcoin wrapper’s backing.
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