What happened?
For a long time, the financial market has been plagued by the problem of “data standardization.” Information such as mergers and acquisitions, dividend payments, and press releases are “non-standardized” data, making it a challenge for practitioners to organize.
Blockchain technology provider Chainlink uses artificial intelligence (AI) and blockchain technology to automatically transform these non-standardized data into “golden records” that comply with international financial standards. This helps reduce manual operations and saves investors and financial institutions $3-5 million in operating costs annually.
Chainlink’s partners include financial institutions such as Franklin Templeton, UBS, and SWIFT, as well as blockchain platforms like Avalanche and ZKsync.
Oracle technology further helps institutional markets reduce operating costs and manual processing.
On October 21, blockchain technology provider Chainlink announced that its team had completed a pilot project. This project utilized AI and decentralized oracle technology to create a blockchain-based enterprise mobile data platform, addressing the long-standing issue of data standardization in the financial market.
Oracles are crucial infrastructure in the blockchain world, linking on-chain and off-chain data as a bridge between the blockchain world and the real world.
Currently, many corporate mobile data, such as mergers and acquisitions, dividend payments, and stock splits, are often presented in human-readable formats such as PDF files and press releases, which are unverifiable “unstructured data.”
These corporate mobile data often suffer from fragmentation, duplicate sources, and require extensive processing. In the European market, these behaviors are extremely fragmented and decentralized.
However, this data is crucial for investors and can only be processed manually, often leading to human errors or slow processing speeds, resulting in annual expenses of $3-5 million for investors or custodians.
Chainlink transforms these unverifiable, unstructured, and hard-to-obtain offline data into digital data through AI and oracle technology, achieving real-time delivery. This not only greatly improves data processing efficiency but also reduces the need for manual operations.
Sergey Nazarov, co-founder of Chainlink, stated that by transforming unrelated corporate behavior data into “golden records” that comply with international financial standards, hundreds of market participants can use them as a single source of data truth.
This project helps traditional financial markets synchronize information faster, reduce errors, and lower costs. It can be said that it successfully solves the most complex unstructured data problem in the financial world.
AI and oracle technology work together to solve data fragmentation, improve financial market synchronization, and transparency.
In the first phase of this project, Chainlink connected decentralized oracles with large language models (LLMs) such as ChatGPT, Gemini, and Claude, and extracted corporate mobile data sources for stocks and fixed-income securities in six European countries, then converted them into compliance with ISO 20022 and Securities Market Practice Group (SMPG) guidelines and other global financial standards.
Then, using Chainlink’s Cross-Chain Interoperability Protocol (CCIP), data is published and distributed on different blockchains, achieving higher data transparency and security in traditional financial markets through the transparency and immutability of blockchain.
Next, the team plans to integrate this system with existing financial systems, such as integration with Swift standards, to be more widely applied in the financial industry.
In addition to this pilot project, Chainlink has recently been actively exploring other ways to bring more value to the institutional market using oracle technology.
For example, in early October, Chainlink partnered with digital asset infrastructure provider Taurus to promote the adoption of asset tokenization in the institutional market and improve security through improved data transparency and cross-chain mobility.
Reference: cointelegraph, coindesk
