ChainLink, a decentralized blockchain chain network for cross-chain communications, has launched a compliance framework designed to unlock more than $100 trillion in institutional investor capital for the cryptocurrency space.
The dispersed Oracle Network Announce Its automatic compliance engine (ACE) was released on Monday. The system provides a modular and standardized framework for managing traditional and Decentralized Finance (DEFI) system.
ChainLink said the new standard will allow the creation of compliance-focused digital assets and services on public and private blockchain networks, including reusable digital identities, automated policy enforcement, digital asset settlements that comply with the crosschain, and the use of regulated assets in DEFI.
The announcement said that ACE is currently gaining early access to specific institutions and aims to unlock new capital worth $100 trillion to enter the blockchain economy.
The standard is built on the chain runtime environment and launched in partnership with market participants, including the financial solution provider Apex Group, the Global Legal Entity Identifier Foundation (GLEIF), and the ERC-3643 Association.
Existing compliance processes in traditional finance are often fragmented and expensive, resulting in billions of dollars in institutional costs.
According to a study Report Written by Lexisnexis and Forrester Consulting.
ChainLink says its privacy compliance framework integrates existing Digital Identity Solutions And support the implementation of OnChain and OffChain policies to achieve institutional digital asset deployment in a compliant way.
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Ace will release $100 trillion worth of institutional capital
Chainlink co-founder Sergey Nazarov said ACE’s goal is to make digital assets more compliant faster, cheaper and more accurate.
“If you develop digital assets and use chain link standards to comply, it will be better, cheaper, and faster than traditional alternatives,” Nazarov said.
“Chainlink Ace is the compliance and identity standard that the tag asset economy has been waiting for, and today’s launch offers the ultimate key building blocks to deliver onChain’s migration with over $100 trillion in institutional capital.”
Previous solutions often rely on manual processes for risk monitoring and authentication, which often lead to repeated efforts to counterpartys due to lack of transparency.
ChainLink’s architecture, by contrast, allows compliance logic to be reusable, upgradeable and executable, enforceable in any combination of token standards, which it claims will result in less onboarding costs and operational complexity.
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Alexandre Kech, CEO of GLEIF, said ChainLink’s compliance engine is a “strong example of a strong organizational identity that can enhance compliance in the blockchain ecosystem”.
“As regulatory expectations in digital and traditional finance continue to evolve, we encourage all financial institutions to explore with solution providers how adopting VLEI can enhance trust, interoperability and auditability in their compliance framework,” Cage said.
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