Chainlink Introduces Automated Compliance Engine to Drive Institutional Adoption

Chainlink, a prominent platform to offer infrastructure to drive on-chain finance, has launched a new initiative. As per Chainlink, the platform has unveiled the exclusive Automated Compliance Engine (ACE), which is a cross-chain modular solution devoted to offering seamless digital asset compliance. The platform disclosed this new project in a recent post shared on its official X account.

Chainlink Brings Institutional Capital On-Chain with Latest Automated Compliance Engine

Chainlink’s announcement mentions that the new Automated Compliance Engine (ACE) will streamline the digital asset regulatory compliance. The project is a cross-chain modular solution developed via the Chainlink Runtime Environment (CRE). In this respect, ACE is focused on unlocking more than $100T in terms of institutional capital. Thus, it is enabling compliant, scalable, and secure issuance of assets across private and public blockchains.

Chainlink operates ACE in partnership with industry giants like ERC-3643 Association, Global Legal Entity Identifier Foundation (GLEIF), and Apex Group. Hence, the initiative delivers a robust framework to establish regulatory alignment in decentralized and traditional financial networks. At present, it is available to specific institutions in terms of early access, addressing crucial market requirements. They take into account regulated use of assets in DeFi protocols, frameworks for reusable on-chain identity, and automated policy implementation.

Driving Compliant and Secure Shift of Institutional Capital On-Chain without Exposing Individual Data

The privacy-preserving architecture of ACE integrates the present identity mechanism with robust on-chain infrastructure. Thus, it offers policy enforcement in diverse jurisdictions based on smart contracts. Apart from that, by utilizing the services provided by Chainlink, institutions get the capability to validate credentials such as AML/KYC, significantly decrease operational costs, and automate reporting, without exposing individual data on-chain. Amid the tightening regulations and accelerating digital transformation in the financial world, Chainlink ACE operates as a key tool to compliantly and securely bring capital on-chain.