How can AIBlockchain save companies 5 million a year 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 industry professionals to organize.
Blockchain technology provider Chainlink, through the use of artificial intelligence (AI) and blockchain technology, automatically converts 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 to $5 million in operating costs annually.
Chainlink’s partners include financial institutions such as Franklin Templeton, UBS, and Swift, as well as blockchain platforms like Avalanche and ZKsync.
Oracle technology further enhances institutional markets, reducing operating costs and manual processing workflows.
On October 21, blockchain technology provider Chainlink announced that its team had completed a pilot project. This project utilizes artificial intelligence (AI) and decentralized oracle technology to create a blockchain-based enterprise data repository, addressing the long-standing issue of data standardization in the financial market.
Oracles: They are an important infrastructure in the blockchain world, linking off-chain and on-chain data, serving as a bridge between the blockchain world and the real world.
Currently, many corporate action data such as mergers and acquisitions, dividend payments, and stock splits are often presented in human-readable formats such as PDF documents and press releases, which belong to unverifiable “unstructured data.”
These corporate action data often suffer from fragmentation, duplicate sources, and require a lot of manual work for processing. These activities are particularly fragmented and dispersed in the European market.
However, this data is important for investors and can only be processed manually at present, often resulting in human errors or slow processing speed, leading to annual expenses of $3 to $5 million for investors or custodians.
Through AI and oracle technology, Chainlink transforms these unverifiable, unstructured, and hard-to-obtain offline data into digital data and achieves 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, stated that by transforming unrelated corporate action data into “golden records” that comply with international financial standards, hundreds of market participants can use it as a single source of data truth.
This project helps traditional financial markets synchronize information faster, reduce errors, and lower costs, successfully solving the most complex unstructured data problem in the financial world.
Collaboration between AI and oracle technology solves data fragmentation, improves financial market synchronization and transparency.
In the first phase of this project, Chainlink connected decentralized oracles with large language models (LLMs) such as ChatGPT, Gemini, and Claude, and extracted corporate action data sources for stocks and fixed-income securities in six European countries, and transformed 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, allowing the traditional financial market to achieve higher data transparency and security through the transparent and tamper-proof features of blockchain.
Next, the team plans to integrate this system with existing financial systems, such as the Swift standard, to apply it more widely in the financial industry.
In addition to this pilot project, Chainlink has also been actively exploring other ways to bring more value to institutional markets through oracle technology.
For example, in early October, Chainlink partnered with digital asset infrastructure provider Taurus, hoping to promote the adoption of asset tokenization in institutional markets and improve security through improved data transparency and cross-chain mobility.
References:
cointelegraph, coindesk