- Chainlink has partnered with Global Layer One to explore TradFi businesses.
- With this integration, Chainlink expands its scope from interoperability to compliance automation.
Chainlink is taking a big step towards mainstream adoption and regulated finance with its integration into Global Layer One (GL1). The strategic cooperation is intended to establish a common standard for crypto markets.
By collaborating Chainlink’s Automated Compliance Engine (ACE) with GL1’s Programmable Compliance Toolkit, the two organizations can create a policy-driven compliance standard for on-chain transactions.
Chainlink and GL1
In a recently published X-Post Blockchain oracle network Chainlink announced its collaboration with Global Layer One, a collaborative initiative between the public and private sectors:
“Global Layer One, a public-private collaboration between regulators and financial institutions around the world that defines the standards and infrastructure for regulated digital asset markets, integrates the Chainlink Automated Compliance Engine to enable the next generation of compliant digital asset transactions.”
Chainlink-GL1 collaboration will change the crypto market
GL1 establishes the core standard, specifications and tools necessary for developing open, interoperable shared ledger infrastructures suitable for regulated digital assets such as tokenized deposits, securities and stablecoins.
The PVTK (Programmable Compliance Tool Kit) provides a model for integrating and automating the implementation of policies and regulations directly into digital assets and on-chain transactions, making compliance easier.
Chainlink’s partnership with GL1 will revolutionize the crypto space by enabling compliant, efficient and transparent transactions for digital assets. The integration of Chainlink’s Automated Compliance Engine with GL1’s Programmable Compliance Toolkit provides dynamic, policy-driven compliance capabilities.
Key system functions include ensuring that the entities responsible for verified operations perform defined transactions under specific, enforceable policy restrictions.
Each actor has a CCIG (cross-chain identity) that represents them and enables verified credentials and crosschain attestations. In this way, secret information is kept off the chain and the verifiable evidence is recorded on it.
This collaboration will enable world-class financial institutions to leverage the global regulatory framework to tap the digital asset market with all its benefits such as efficiency, transparency and interoperability. Chainlink:
“Together, GL1 and Chainlink enable leading financial institutions to operate within global regulatory boundaries while unlocking the efficiency, transparency and interoperability of token markets.”
Chainlink’s importance in regulated finance is growing
Interestingly, Chainlink’s GL1 alliance has further strengthened its position in the global blockchain sector. Chainlink has evolved from a pure data oracle network to a core system that supports interoperability, compliance and the tokenization of financial assets.
With its Cross-Chain Interoperability Protocol (CCIP), Chainlink had previously underlined its commitment to connecting TradFi and blockchain. The protocol is already recognized by leading institutions such as Swift, the DTCC and several international banks for its ability to securely connect private and public blockchains.
The framework thus opens up the possibility of seamless transfer of tokenized assets from one network to another.
By integrating the Automated Compliance Engine (ACE) into GL1, Chainlink now expands its scope from interoperability to compliance automation.
The growing number of institutional partnerships is evidence that Chainlink is creating the conditions for a regulated DeFi ecosystem where tokenized assets, securities and stablecoins can flow freely in compliance with regulations.
As regulators worldwide increase oversight and demand verifiable on-chain compliance, Chainlink’s expanded portfolio of offerings is poised to serve as a bridge between decentralized innovation and conventional financial governance.
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