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Chainlink, the decentralized oracle network built on Ethereum, has introduced new privacy-preserving technologies aimed at helping financial institutions securely transact across blockchain networks.
This initiative brings together key financial and market infrastructures, including Euroclear and Swift, alongside major institutions such as UBS, Franklin Templeton, Wellington Management, CACEIS, Vontobel, and Sygnum Bank.
In collaboration with blockchain ecosystem partners, Hyperledger Besu, Avalanche, and ZKsync, it demonstrated how Chainlink’s decentralized oracles, integrated with large language models (LLMs) like OpenAI's ChatGPT 4.0, Google’s Gemini 1.5 Pro, and Anthropic’s Claude 3.5, can validate and deliver critical financial data onchain.
Using Chainlink’s Cross-Chain Interoperability Protocol (CCIP), this data was securely transferred across public and private blockchains. This approach addresses inefficiencies in corporate action processes, which currently cost firms millions annually due to manual data validation.
By creating a unified, real-time accessible "golden record" of corporate actions data, the initiative significantly reduces the need for manual reviews, offering all stakeholders—from custodians to asset managers—instant access to standardized, accurate information. This marks a major milestone in the effort to streamline and modernize corporate action data management.
These advancements are set to transform how institutions maintain data privacy while leveraging the benefits of blockchain applications.
The Blockchain Privacy Manager
On October 22, Co-Founder of Chainlink launched two key privacy features: the Blockchain Privacy Manager and the CCIP Private Transactions protocol. These tools enable financial institutions to engage in cross-chain transactions with full end-to-end privacy, addressing a critical need in the blockchain space.
In there official press release chainlink stated that 'Until now, a lack of secure cross-chain privacy has hindered financial institutions from meaningfully interacting across blockchain environments in a way that meets regulatory requirements, such as GDPR and MiFID II. These institutional requirements include the need for complete end-to-end privacy for private chain to private chain transactions, as well as limiting data exposure for private chain to public chain transactions.'