Chainlink has launched the Automated Compliance Engine (ACE), a compliance solution for on-chain digital assets spanning both traditional and decentralized finance (DeFi). The development involved collaborating with fund administrator Apex Group, identity organization GLEIF and the ERC-3643 Association, which governs the security token standard.
“Chainlink’s technology, combined with our existing tokenisation and on-chain finance capabilities, will set the standard for compliance on DLT. We are bridging key compliance requirements with seamless blockchain execution,” said Zion Hilelly, Chief Product Officer of Apex Group. The fund administrator’s position in this space was strengthened by its recent acquisition of Tokeny, the original developer of the ERC-3643 standard.
The framework aims to address fragmented compliance processes that currently burden institutional investors. It incorporates GLEIF’s digital identities into its identity framework, which is designed to be privacy preserving. Additionally, it includes rules based compliance that also supports cross chain settlement.
This collaboration reflects Chainlink’s broader strategic positioning in the financial services sector. It represents a growing trend of firms spanning the DeFi and traditional finance sectors. The organization initially focused on developing the decentralized oracle network for the crypto sector, which bridges the off chain and on chain environments. Its second major solution supports connectivity between different blockchains. In doing so, Chainlink Labs expanded to serve institutions through trials with Swift, DTCC and other organizations testing the Cross-Chain Interoperability Protocol (CCIP). The associated cryptocurrency token has a market capitalization of almost $9 billion.
