Chainlink co-founder Sergey Nazarov stated that blockchain-based compliance solutions and tokenized Real-World Assets (RWAs) will be significantly more efficient than traditional finance (TradFi) solutions, potentially becoming more than ten times faster and cheaper. This shift could drive financial institutions to adopt digital assets more widely. Traditional compliance processes are often expensive and fragmented due to manual complexities, resulting in substantial costs—over $60 billion for financial crime compliance in 2023 alone. Nazarov emphasized that tackling this inefficiency can enable institutions to invest more capital on-chain. Chainlink's recently launched Automated Compliance Engine (ACE) aims to provide a standardized framework for regulatory compliance. By facilitating lower transaction costs and friction for institutional investors, ACE supports the growth of RWA investments. Nazarov noted that reduced compliance costs in blockchain could offer substantial advantages to financial institutions, encouraging them to transition to blockchain markets.

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