A consortium of 24 leading global financial institutions is collaborating with decentralized oracle network Chainlink to fundamentally transform the processing of critical corporate actions across international markets. This initiative aims to introduce unprecedented efficiency and accuracy to processes like dividend payouts, stock splits, and mergers, which have historically been complex and resource-intensive.
Revolutionizing Corporate Actions Processing
Chainlink recently concluded a successful pilot program involving prominent entities such as SWIFT, DTCC, and Euroclear, alongside six other major financial players. This trial demonstrated the power of integrating blockchain technology with artificial intelligence to ingest and validate corporate action events, even those presented in various languages. The outcome was the creation of unified data sets, referred to as “golden records,” generated in near real-time.
Establishing a Single Source of Truth
“Golden records” were disseminated concurrently to both blockchain networks and established financial infrastructure, including the SWIFT interbank messaging system. This dual distribution model significantly diminishes manual intervention and mitigates the potential for errors. The process incorporated advanced large language models, such as OpenAI’s GPT, Google’s Gemini, and Anthropic’s Claude, to parse structured data from unstructured corporate action notifications. The resulting unified records were then published on-chain, establishing a singular, easily accessible, and verifiable source of truth for all participating entities.
Technological Underpinnings and Validation
The operational integrity of this new system is supported by Chainlink’s Runtime Environment (CRE), which rigorously validates the outputs generated by the AI models. Furthermore, Chainlink’s Cross-Chain Interoperability Protocol (CCIP) facilitates the secure transmission of data to various blockchains, including Avalanche, and to private networks like that of DTCC. Data attesters play a crucial role by cryptographically verifying these outputs and contributing to the completeness of data fields, reportedly leading to a near 100% data consensus across all tested events.
Addressing Economic Inefficiencies
The current landscape for processing corporate actions is marked by significant costs. A report by Citi indicates that a single corporate action event can involve as many as 110,000 interactions and incur processing costs of approximately $34 million. The global financial industry collectively expends an estimated $58 billion annually on these operations, highlighting the substantial economic incentive to adopt more streamlined and technologically advanced solutions.
Emily Carter has over eight years of experience covering global business trends. She specializes in technology startups, market innovations, and corporate strategy, turning complex developments into clear, actionable stories for our readers.