Decentralized oracle network Chainlink has launched its Automated Compliance Engine (ACE), a new framework designed to bridge compliance gaps between traditional finance and decentralized systems.
Announced on Monday June 30, ACE introduces a modular and standardized approach to managing regulatory compliance across both public and private blockchain networks.
The initiative, currently in early access for select institutions, aims to unlock over $100 trillion in institutional investor capital by enabling compliant digital asset deployment. Chainlink built ACE on its Runtime Environment in collaboration with market participants such as Apex Group, the Global Legal Entity Identifier Foundation (GLEIF), and the ERC-3643 Association.
According to Chainlink co-founder Sergey Nazarov, ACE is positioned as a transformative solution for financial institutions navigating fragmented and costly compliance requirements. In 2023 alone, financial crime compliance costs for institutions in the US and Canada exceeded $60 billion, as highlighted in a report by LexisNexis and Forrester Consulting.
““If you make a digital asset and use the Chainlink standard for compliance in that digital asset, it will be better, cheaper, and faster than its traditional alternative,”
said Nazarov.
“Chainlink ACE is the compliance and identity standard the tokenized asset economy has been waiting for, with today’s launch providing a final critical building block for over $100 trillion in institutional capital to move onchain.”
The compliance engine integrates existing digital identity solutions with privacy-preserving features, enabling automated policy enforcement, reusable digital identities, crosschain compliant asset settlements, and regulated asset usage in DeFi. Unlike legacy systems that rely on manual risk monitoring and identity verification.
GLEIF CEO Alexandre Kech described Chainlink’s new standard as a “powerful example” of leveraging verifiable organizational identity to enhance compliance within blockchain ecosystems. He urged financial institutions to consider integrating vLEI (verifiable Legal Entity Identifier) to strengthen trust, interoperability, and auditability as regulatory landscapes continue to evolve.
Meanwhile, Abu Dhabi Global Market (ADGM), a leading financial free zone overseeing financial firms managing over $635 billion in assets, signed a Memorandum of Understanding (MoU) with blockchain oracle provider Chainlink.
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