Blockchain Compliance Tools to Revolutionize Traditional Finance Costs

Blockchain-based Investment Products

Blockchain technology is set to transform compliance tools and investment products in the financial industry, making them more than ten times faster and cheaper than traditional offerings. This advancement is expected to drive increased adoption of digital assets among financial institutions, as traditional compliance processes are often complicated and costly due to manual procedures, resulting in billions of dollars in expenses for institutions.

Chainlink's Automated Compliance Engine

During the RWA Summit 2025 in Cannes, Chainlink co-founder Sergey Nazarov highlighted the inefficiencies in traditional finance compliance processes, emphasizing the need for improvement, particularly in areas such as identity verification for AML and KYC. Chainlink recently unveiled its Automated Compliance Engine (ACE), a system designed to streamline regulatory compliance for both traditional and decentralized finance protocols. ACE is currently in early access for select institutions and aims to facilitate the entry of $100 trillion worth of new capital into the blockchain economy.

Efficiency of Blockchain Technology

By leveraging blockchain technology, investing in traditional assets like equities and commodities will become more cost-effective through real-world asset (RWA) tokenization. This innovation is expected to encourage more institutions to embrace RWA-based investments. Chainlink's ACE framework supports the launch of tokenized RWAs with built-in compliance measures, potentially reducing the friction and cost for institutional investors entering blockchain markets.

Institutional Adoption of Blockchain

The rise of onchain RWAs has seen significant growth, reaching a cumulative all-time high of over $25.4 billion across 318,000 total asset holders, excluding stablecoins. As blockchain technology continues to drive efficiencies in compliance and investment processes, it is anticipated that more institutions will be encouraged to explore the opportunities presented by blockchain-based solutions in the financial sector.