Chainlink Pilots Onchain Database of Corporate Actions Using AI and Decentralized Oracle Technology

Chainlink has piloted an onchain database of corporate actions using artificial intelligence and decentralized oracle technology, according to an Oct.

Chainlink (LINK) has been piloting an onchain database of corporate actions, using artificial intelligence (AI) and decentralized oracle technology, according to an Oct. 21 announcement.

The pilot aims to address the lack of real-time and standardized data around corporate actions, using “the combined advancements in AI, oracles, and blockchain technology,” Chainlink said.

“We found that by using data oracles paired with multiple [large language AI models], we were able to source unverifiable, unstructured, and often unreachable off-chain data and convert it autonomously into digital data that is available in near real-time,” Chainlink said.

According to a report by Chainlink detailing the initiative, information on corporate actions — such as mergers, dividends and stock splits — presents “one of the most complex unstructured data problems in the financial world.”

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,” the report said.

These inefficiencies cost investors, brokers and custodians approximately $3 million to $5 million each every year, according to Chainlink.

The pilot was completed by Chainlink together with financial services firms, including Franklin Templeton, Swift, and UBS, as well as blockchain networks such as Avalanche and ZKsync, the announcement noted.

“By leveraging AI and Chainlink oracles, […] we can dramatically reduce the manual processes required, enabling significant potential operational efficiency and cost reduction,” said Mark Garabedian, Wellington Management’s director of digital assets and tokenization strategy.

Decentralized oracles like Chainlink connect blockchain networks to external data sources, such as financial markets data. Chainlink has been exploring various ways oracles can aid institutional financial markets.

On Oct. 2, Chainlink partnered with Taurus, a digital asset infrastructure provider, to facilitate institutional tokenization. The partnership will focus on improving data transparency, cross-chain mobility and security to aid the adoption of tokenized assets in institutional markets.

On Sept. 23, the parent company of cryptocurrency asset manager 21Shares, 21.co, announced that it is adding Chainlink’s proof of reserve to 21 Bitcoin ( BTC ) BDI $67,434 -0.07% to address potential concerns about the Bitcoin wrapper’s backing.