Blockchain Compliance, RWAs 10x faster, cheaper than TradFi
Blockchain-based investment products and compliance tools are projected to be over ten times faster and cheaper than traditional finance offerings, promoting digital asset adoption among financial institutions. Traditional compliance products are costly and fragmented due to manual processes, leading to billions in expenses. Chainlink co-founder Sergey Nazarov highlighted the inefficiencies in traditional finance, particularly in identity verification and compliance, suggesting that blockchain solutions could significantly reduce costs and complexities. Chainlink launched the Automated Compliance Engine (ACE) on June 30, designed to standardize regulatory compliance across traditional and decentralized finance. ACE aims to unlock $100 trillion in new capital for the blockchain economy. Financial crime compliance costs in the US and Canada exceeded $60 billion in 2023. Tokenization of real-world assets (RWAs) through blockchain technology is expected to lower investment costs, encouraging institutional adoption. ACE supports tokenized RWAs with built-in compliance, reducing friction and costs for institutional investors. Onchain RWAs have reached over $25.4 billion across 318,000 asset holders.
