Chainlink and Avalanche Use AI, Oracles to Integrate Market Data Onchain in Collaboration with Swift and Euroclear

Chainlink (LINK) and Avalanche (AVAX) have launched a pilot for an on-chain database of corporate actions. The goal is to provide real-time, standardised data by converting off-chain (real world), unstructured data into digital formats using AI models and decentralised oracles.

In other words, they are building a blockchain-based database because legacy systems suck. Well, they didn’t say that but close enough.

This inefficient data processing system Avalanche talks about costs businesses millions of dollars annually due to manual processing and errors. It also has limited flexibility and has security vulnerabilities due to a lack of modern security protocols, outdated architecture, etc.

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Chainlink first conducted an initiative with blockchain networks Avalanche and layer-2 scaling solution zkSync — alongside UBS, Franklin Templeton, Swift, Sygnum Bank, and many other heavyweights. In the project’s first phase, Chainlink focused on equity and fixed-income securities data across six European countries. 

Using decentralised oracles and large language models (LLMs) like OpenAI’s ChatGPT, Google’s Gemini, and Anthropic’s Claude, Chainlink extracted and structured corporate actions data to meet global financial standards, including ISO 20022 and SMPG guidelines. This data was then published across blockchains via Chainlink’s Cross-Chain Interoperability Protocol (CCIP).

Future phases will explore integrating this framework with existing systems, such as Swift messaging standards, to promote broader industry adoption.

CCIP’s compatibility with Swift’s messaging protocol in ISO standards enables financial institutions to interact with on-chain data directly from their existing systems. 

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By automating and standardising these legacy systems, Chainlink seeks to reduce these costs and improve data accuracy. According to Chainlink’s co-founder Sergey Nazarov, creating unified “golden records” from disconnected corporate data will help financial markets synchronise more quickly, reduce errors, and lower operational costs.

Tokenisation is one of the hottest markets in the blockchain industry right now. It’s expected to reach US$30T (AU$45T) by 2023, according to forecasts.