Chainlink Pilots AI-Powered On-Chain Database For Corporate Actions

According to Cointelegraph, Chainlink has launched a pilot program to create an on-chain database of corporate actions using artificial intelligence (AI) and decentralized oracle technology. Announced on October 21, the initiative aims to leverage advancements in AI, oracles, and blockchain technology to address the lack of real-time and standardized data around corporate actions. Chainlink stated that by using data oracles paired with multiple large language AI models, they were able to source unverifiable, unstructured, and often unreachable off-chain data and convert it autonomously into digital data available in near real-time. Corporate actions, such as mergers, dividends, and stock splits, present one of the most complex unstructured data problems in the financial world, according to Chainlink. 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. These inefficiencies cost investors, brokers, and custodians approximately $3 to $5 million each year. The pilot was completed in collaboration with financial services firms including Franklin Templeton, Swift, and UBS, as well as blockchain networks such as Avalanche and zkSync. Mark Garabedian, Wellington Management’s director of digital assets & tokenization strategy, noted that leveraging AI and Chainlink oracles can dramatically reduce the manual processes required, enabling significant potential operational efficiency and cost reduction. Decentralized oracles like 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 October 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. Additionally, on September 23, the parent company of cryptocurrency asset manager 21Shares, 21.co, announced that it is adding Chainlink’s proof of reserve to 21BTC to address potential concerns about the Bitcoin wrapper’s backing.