How can AIBlockchain help companies save 5 million annually by standardizing traditional financial data

What happened?
For a long time, the financial market has been plagued by the problem of “data standardization”. Information such as mergers and acquisitions, dividend payments, and press releases are all “non-standardized” data, which poses a major challenge for professionals to organize.
Blockchain technology provider Chainlink uses artificial intelligence (AI) and blockchain technology to automatically convert these non-standardized data into “golden records” that comply with international financial standards. This helps reduce manual operations and can save investors and financial institutions $3-5 million in operating costs each year.
Chainlink’s partners include Franklin Templeton, UBS, Swift, as well as blockchain platforms like Avalanche and ZKsync.
Oracle technology further empowers institutional markets to reduce operational costs and manual processing
On October 21, blockchain technology provider Chainlink announced that its team has completed a pilot project. This project utilizes artificial intelligence (AI) and decentralized oracle technology to create a blockchain-based enterprise mobile database that solves the long-standing problem of data standardization in the financial market.
Oracle: It is an important infrastructure in the blockchain world, linking data on and off the chain, acting as a bridge between the on-chain world and the real world.
Currently, many corporate action data such as mergers and acquisitions, dividend payments, and stock splits are often presented in a human-readable format, such as PDF files and press releases, which belong to unverifiable “unstructured data”.
These corporate action data often suffer from problems such as fragmentation, duplicate sources, and the need for a lot of manual work. These behaviors are particularly fragmented and scattered in the European market.
However, these data are important for investors, and currently can only be processed manually, often leading to human errors or slow processing speed, resulting in annual expenses of $3-5 million for investors or custodians.
Chainlink uses AI and oracle technology to transform these unverifiable, unstructured, and difficult-to-obtain offline data into digital data and achieve real-time delivery. This not only greatly improves data processing efficiency but also reduces the need for manual operations.
Sergey Nazarov, co-founder of Chainlink, said that by transforming these unrelated company action data into “golden records” that comply with international financial standards, hundreds of market participants can use it as a single source of data facts.
This project helps traditional financial markets synchronize information faster, reduce errors, and lower costs, successfully solving the most complex problem of unstructured data in the financial world.
AI and oracle technology work together to solve data fragmentation and improve the synchronicity and transparency of the financial market
In the first phase of this project, Chainlink connected decentralized oracles with large language models (LLMs) such as ChatGPT, Gemini, and Claude, and extracted enterprise action data sources for stocks and fixed income securities in six European countries, and converted them into compliance with global financial standards such as ISO 20022 and the Securities Market Practice Group (SMPG) guidelines.
Then, using Chainlink’s Cross-Chain Interoperability Protocol (CCIP), data is published and distributed on different blockchains, leveraging the public, transparent, and tamper-proof characteristics of blockchain to achieve higher data transparency and security in the traditional financial market.
Next, the team plans to integrate this system with existing financial systems, such as Swift standards, for broader application in the financial industry.
In addition to this pilot project, Chainlink has recently been actively exploring other ways to bring more value to the institutional market through oracle technology.
For example, in early October, Chainlink collaborated with digital asset infrastructure provider Taurus in hopes of promoting the adoption of asset tokenization in the institutional market and improving security through enhanced data transparency and cross-chain mobility.
Reference:
cointelegraph, coindesk