Article Details

Chainlink & 24 Global Giants Tackle $58 Billion Corporate Actions Problem

Key Takeaways:

• Chainlink has led an industry coalition of 24 major financial firms (including Swift, DTCC, Euroclear) to pilot a production-grade solution solving the $58 billion annual corporate actions inefficiency.
• The new system delivers 100% data consensus across events, transforms records into ISO 20022 messages for Swift, and publishes unified golden records across blockchains using CCIP.
• Next, the initiative will support more complex corporate actions (like stock splits), expand geographic reach, and strengthen privacy, governance, and compliance features.

In a landmark announcement, Chainlink and global financial institutions revealed today the successful outcome of phase two of their corporate actions initiative. This crypto-industry innovation now integrates blockchain, AI, and traditional finance infrastructure to streamline one of finance’s most costly processes.

Read More: Chainlink Launches First EU-regulated On-chain Exchange, 21X, for Tokenized Securities

Why Corporate Actions Matter (and Why They Fail)

Corporate actions such as dividends, mergers, tender offers, and stock splits underpin equity markets. Yet they remain deeply fragmented and manually intensive.

Key Pain Points:

• High costs & inefficiency: The status quo leads to ~$58 billion in global annual costs, with each event averaging $34 million and involving 110,000+ firm interactions.
• Manual revalidation: Over 75% of institutions still revalidate data manually due to inconsistent formats and missing structure.
• Delayed confirmations: Traditional workflows rely on PDFs, press releases, custodians, brokers, and data aggregators, introducing 24–48 hour delays, errors, and data drift.

Because the information is passed through many hands without a single verified source, errors multiply. Lack of standardization and real time verification implies that receivers usually get conflicting or delayed instructions of corporate actions.

How Chainlink’s Solution Works

Chainlink model will integrate oracles, artificial intelligence, blockchain interoperability and institutional systems in a unified architecture.

Unified Golden Record & Data Attestors

Institutions serve as attestors and contributors and in this model, record validation, record enrichment, and cryptographical signing are performed. The system, through this process, attained 100 percent data consensus of tested corporate action events among participants, developing one, trusted “golden record.”

ISO 20022 Messaging via Swift

Chainlink runtime Environment (CRE) integrates the results of AI models, develops consensus, and transforms the data into the ISO 20022 compliant messages. These are structured messages that are relayed in a custom Swift adapter into the existing financial infrastructure.

Blockchain Interoperability via CCIP

Chainlink Cross Chain Interoperability Protocol (CCIP) enhances certified records on the AppChain of DTCC and other blockchains including public and private blockchains. This will ensure that the market participants share the same attested information on the corporate actions.

Multilingual and Global Support

This system supports the use of multi-language disclosures (e.g. Spanish, Chinese) to make it more global. This linguistic flexibility helps in eliminating territorial boundaries and territorial jurisdictions.

Outcomes & Empirical Results

The pilot achieved several breakthroughs:

• 100% consensus across participants on event data
• Reduced latency: validated data entered systems in minutes rather than days
• Cross-system alignment: the same record accessible to smart contracts, custodians, asset managers, and post-trade platforms
• Interoperability between blockchain and traditional financial infrastructure

The initiative will provide what has been a bottleneck in asset servicing and post trade operations by standardizing extraction, validation and delivery of corporate actions data.

Read More: Chainlink Joins Aethir’s Alliance to Fuel Next-Gen Decentralized AI

What Comes Next (Phase 3 & Beyond)

Extending Workflow Coverage

The next phase will onboard even more complicated actions e.g. stock splits, spin offs, reorganizations and make them onchain through permissioned smart contracts and verified inputs.

Broader Jurisdictional & Asset Class Support

More regions and currencies will be incorporated, and more asset classes than equities will be incorporated.

Privacy, Governance & Compliance

The team will establish more robust privacy regimes and regulatory frameworks to address institutional and regulatory requirements in various markets.

Enabling Tokenized Equity Ecosystems

Having standardized, trusted data, tokenized public equities can be built upon a base of reliable corporate actions processing, enhancing automation and interconnecting onchain equity markets with legacy infrastructure.

Relevance to Crypto & Institutional Finance

This innovation is a turning point with crypto-native instruments resolving established financial frictions:

• Bridging TradFi and Web3: The initiative links blockchain and the traditional finance in a logical way by integrating ISO-standard messages and connecting to Swift and DTCC.
• Oracle + AI synergy: Oracle governance through multiple AI models come to an agreement, showing how decentralized AI could progress mission-critical financial processes.
• Scalable infrastructure: The same verified data can be used by smart contracts, tokenized assets, and existing systems.
• Competitive advantage for LINK: Chainlink roots its presence on an institutional level as oracles become critical infrastructure.

The post Chainlink & 24 Global Giants Tackle $58 Billion Corporate Actions Problem appeared first on CryptoNinjas.

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