Blockchain -based investment products and compliance tools are about to become more than 10 times faster and cheaper than traditional financing offers (tradfi), which has attenuated the increased adoption of digital assets among financial institutions.
Traditional financial compliance products are often fragmented and expensive due to complex manual processes, which leads to billions of dollars of costs for institutions.
“Compliance is an ineffective part of the traditional finance industry of which many people are not satisfied, including the verification of the identity of the LMA and KYC,” the co-founder of Chainlink, Sergey Nazarov at Cointelegraph at Cointelegraph at the RWA 2025 summit in Cannes.
“If you compare what it costs and how complicated it is to make a compliant transaction in the Tradfi world, our industry should be able to do so ten times faster and cheaper,” he said. “It’s like a huge cost problem for the Tradfi industry.”
Nazarovc added that the resolution of this ineffectiveness could “unlock a bunch of institutions to be able to put the capital chain”.
ChainLink is launching an automated compliance engine
On June 30, ChainLink revealed its automated compliance engine (ACE), a system that provides a modular and standardized framework to manage regulatory compliance in traditional and decentralized financing protocols (DEFI).
According to Chainlink, Ace has early access for certain institutions and aims to unlock 100 billions of dollars of new capital to enter the blockchain economy.
Compliance with financial crime for institutions in the United States and Canada costs more than $ 60 billion in 2023, according to a Lexisnexis and Forrester Consulting research report.
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Rwas could become cheaper than traditional active
Thanks to the efficiency of blockchain technology, investing in traditional assets such as basic actions and products will become cheaper thanks to the tokenization of real assets (RWA).
This could inspire more and more institutions to adopt investments based on Rwa, said Nazarov, adding:
“If compliance or identity costs or the compliance of renewal and management costs in the format and packaging of the blockchain are 5 to 10 times cheaper, then it is a huge advantage.”
The ACE framework of Chainlink takes care of the launch of Rwas Tokenized with integrated compliance, potentially reducing the friction and cost of institutional investors entering the blockchain markets.
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“It is intended to reduce the friction and the cost of institutional capital making transactions on blockchains,” said Nazarov.
Onchain Rwas has reached a cumulative summit of more than $ 25.4 billion out of $ 318,000 holders of total assets, excluding the value of Stablecoins, according to data from Rwa.xyz.
https://www.youtube.com/watch?v=tyo993t72ms
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