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Zoltan Vardai
Zoltan Vardai
47 minutes ago
Blockchain compliance tools can slash TradFi costs: Chainlink co-founder
Institutional investors will increasingly adopt blockchain-based compliance solutions and tokenized RWAs, Chainlink’s co-founder Sergey Nazarov told Cointelegraph.
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Blockchain compliance tools can slash TradFi costs: Chainlink co-founder
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Blockchain-based investment products and compliance tools are poised to become more than 10 times faster and cheaper than traditional finance (TradFi) offerings, spurring increased digital asset adoption by financial institutions.
Traditional financial compliance products are often fragmented and expensive due to complex manual processes, resulting in billions of dollars in costs.
“Compliance is an inefficient part of the traditional finance industry that a lot of people are not happy about, including identity verification of AML and KYC,” Chainlink co-founder Sergey Nazarov told Cointelegraph during the RWA Summit 2025 in Cannes.
“If you compare what it costs and how complicated it is to make a compliant transaction in the TradFi world, our industry should be able to do it 10 times faster and cheaper,” he said. “It’s like a huge cost problem for the TradFi industry.”
Nazarov added that solving this inefficiency could “unblock a bunch of institutions from being able to put capital onchain.”
Chainlink launches Automated Compliance Engine
On June 30, Chainlink revealed its Automated Compliance Engine (ACE), a modular and standardized framework for managing regulatory compliance across traditional and decentralized finance (DeFi) protocols.
ACE is in early access for select institutions and ultimately aims to unlock $100 trillion worth of new capital to enter the blockchain economy, according to Chainlink.
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