Chainlink Collaborates with Global Institutions to Address $58 Billion Corporate Actions Challenge

Introduction

A significant problem exists in the realms of banking and capital markets regarding corporate actions processing, which incurs an annual cost of approximately $58 billion globally. Chainlink, recognized as the industry-standard oracle platform, is making strides to address this issue by spearheading an initiative alongside 24 leading financial market participants. This initiative aims to standardize and enhance the efficiency of corporate actions processing through the integration of blockchain technology and artificial intelligence (AI).

Phase Two Unveiling

Recently, Chainlink announced the outcomes of the second phase of this initiative, showcasing how these advancements can revolutionize the way organizations handle corporate actions data. The latest phase introduced significant improvements, enabling financial institutions to receive structured and validated data quickly, ensuring seamless integration into their existing systems within minutes instead of the standard days.

Participants and Collaboration

The project has seen participation from heavyweight players in the financial sector, including DTCC, Swift, Euroclear, UBS, and BNP Paribas, to name a few. By combining their efforts, these organizations are paving the way for a system where reduced settlement errors, faster reconciliations, and lower operational risks become the norm, rather than the exception.

How It Works

At the core of this initiative is the Chainlink Runtime Environment (CRE), which organizes the validation of various AI model outputs. This process results in ISO 20022-compliant messages that are communicated via the Swift Network, ensuring that all data is accurately formatted and readily accessible. The introduction of new roles for data attestors and contributors means that every piece of data can be tracked and verified, enhancing accountability throughout the lifecycle of each corporate action.

Significant Financial Impact

Citi's 2025 Asset Servicing report indicates that processing a single corporate action event currently involves over 110,000 firm interactions, resulting in an average processing cost of $34 million. Despite these staggering figures, the industry struggles with automation rates that are less than 40%. This inefficiency underscores the necessity of solutions like the one Chainlink is developing.

Technological Features

In previous phases, the initiative demonstrated that large language models (LLMs) could extract structured data from unstructured corporate action announcements, creating unified gold records on-chain. These records, which serve as a shared truth, ensure that all participants in the financial ecosystem have access to the same validated data. The recent enhancements have further refined this model, improving speed and accessibility to corporate actions data across various jurisdictions and languages, including Spanish and Chinese.

Future Developments

Looking ahead, the collaboration aims to extend its framework to accommodate more complex corporate actions, such as stock splits, while also enhancing global coverage and privacy controls. This ongoing effort signifies a commitment to meeting the evolving operational and compliance needs of financial institutions worldwide.

Conclusion

The Chainlink initiative signifies a vital leap toward modernizing financial infrastructure through blockchain technology and AI. By unifying the approach to corporate actions processing, Chainlink and its collaborators are not just addressing the immediate issue of costs; they are also laying down the groundwork for a more efficient, transparent future in capital markets. As this initiative continues to develop, its impact could redefine standards across the financial services landscape, fostering an era of increased synergy between traditional and digital finance. Chainlink is positioning itself at the forefront of this transformation, enabling smarter, more efficient operations in the complex world of finance.

Final Thoughts

In a rapidly evolving financial ecosystem, the need for solutions that navigate challenges like corporate actions processing is clearer than ever. Chainlink’s initiative demonstrates how cross-industry collaboration can yield transformative results, benefiting stakeholders from financial giants to individual investors.