ChainLink, an Orachain Oracle Network decentralized for Crosschain communication, launched a compliance framework aimed at unlocking more than 100 billions of dollars in institutional investors for the cryptocurrency space.
The decentralized Oracle Network announced on Monday the publication of its automated compliance engine (ACE). The system provides a modular and standardized framework to manage regulatory compliance in traditional and decentralized financing systems (DEFI).
ChainLink has said that the new standard will allow the creation of assets and digital services to compliance in public and private blockchain networks, including reusable digital identities, the application of automated policies, the regulation of digital assets in accordance with crosschain and the use of assets regulated in DEFI.
ACE is currently at first access to selected institutions and aims to unlock 100 billions of dollars of new capital to enter the blockchain economy, the announcement said.
The standard was built on the ChainLink execution environment and launches in collaboration with market players, in particular the supplier of financial solutions Apex Group, the Global Legal Entity Identifier Foundation (Gleif) and the association ERC-3643.
The existing compliance processes in traditional finance are often fragmented and expensive, which leads to billions of dollars in costs for institutions.
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.
ChainLink said that its conformity framework preserving confidentiality incorporates existing digital identity solutions and supports ONCHAIN and OTEPCHAIN’s policy applications, allowing the institutional deployment of digital assets in a compliant.
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Ace to unlock 100 billions of dollars in institutional capital
ACE aims to make compliance with digital assets faster, cheaper and more precise, according to Sergey Nazarov, the co-founder of Chainlink.
“If you make a digital asset and use the compliance standard for compliance in this digital asset, it will be better, cheaper and faster than its traditional alternative,” said Nazarov, adding:
“Chainlink ACE is the standard of conformity and identity that the tokenized asset economy awaits, today’s launch offering a block of final critical construction for more than 100 billions of dollars of institutional capital to move onchain.”
Previous solutions were often based on manual risk surveillance and identity verification processes, which has often resulted in duplicated efforts between counterparts due to a lack of transparency.
On the other hand, the architecture of Chainlink allows the logic of conformity to be reusable, upgrade and enforceable through any combination of token standards, which, according to her, will result in integration costs and lower operational complexities.
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Chainlink’s compliance engine is a “powerful example of how the verifiable organizational identity can improve compliance between blockchain ecosystems”, according to Alexandre Kech, CEO of Gleif.
“As regulatory expectations are evolving in digital and traditional finance, we encourage all financial institutions to explore with their solutions suppliers how the adoption of the VLEI can strengthen confidence, interoperability and auditability in their frameworks of conformity,” said Kech.
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