Chainlink has unveiled a new compliance framework aimed at easing regulatory hurdles and reducing costs for institutions entering the digital asset market. The solution, called the Automated Compliance Engine (ACE), is designed to streamline compliance across traditional finance (TradFi) and decentralised finance (DeFi), potentially unlocking over $100 trillion in institutional investment into the crypto space.
A New Compliance Standard for Digital Assets
On Monday, Chainlink, a leading decentralised oracle network for crosschain communication, announced the launch of its Automated Compliance Engine (ACE). The framework offers a modular and standardised solution for managing regulatory compliance in digital asset transactions.
Built on the Chainlink Runtime Environment, ACE enables the creation of compliance-centric digital assets and services that function seamlessly across both public and private blockchain networks. Features include reusable digital identities, automated policy enforcement, cross-chain compliant settlement, and regulated asset usage in DeFi environments.
The system is currently in early access, available to a limited group of institutional participants. Chainlink has partnered with key market entities including financial solutions provider Apex Group, the Global Legal Entity Identifier Foundation (GLEIF), and the ERC-3643 Association to bring ACE to market.
Reducing Compliance Costs and Complexity
The existing compliance landscape in traditional finance is marked by fragmentation and high costs. According to a 2023 study by LexisNexis and Forrester Consulting, financial crime compliance alone cost institutions in the US and Canada more than $60 billion.
Chainlink launches ACE. Source: Chainlink
Chainlink’s ACE aims to significantly reduce these costs by providing a more streamlined and transparent compliance process. Its privacy-preserving architecture supports both onchain and offchain policy enforcement, integrating seamlessly with existing digital identity systems. This interoperability is expected to lower onboarding costs, cut down on duplicated compliance efforts, and enable smoother operational processes for institutions engaging with digital assets.
ACE: A Bridge to Institutional Onchain Adoption
Sergey Nazarov, co-founder of Chainlink, believes ACE is a vital step towards large-scale institutional adoption of blockchain technology.
“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 tokenised 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 framework replaces traditional manual compliance processes—often time-consuming and redundant—with reusable and upgradeable compliance logic that can be enforced across different types of digital tokens.
Strengthening Trust and Interoperability
Alexandre Kech, CEO of GLEIF, praised the compliance engine for its potential to enhance organisational transparency and trust across blockchain ecosystems. He highlighted the integration of verifiable Legal Entity Identifiers (vLEIs) as a powerful feature for improving compliance.
“As regulatory expectations evolve in both digital and traditional finance, we encourage all financial institutions to explore with their solution providers how adopting the vLEI can strengthen trust, interoperability and auditability in their compliance frameworks,” said Kech.
By offering a standardised, verifiable and privacy-conscious approach to compliance, ACE aims to meet the stringent demands of regulators while supporting the broader adoption of blockchain technology among institutions.
A Step Toward the Tokenised Future
With ACE, Chainlink is positioning itself as a key infrastructure provider for the future of tokenised finance. As global financial institutions increasingly explore tokenisation of assets—from bonds to real estate—the need for robust, interoperable compliance solutions has become critical.
Chainlink’s initiative could serve as a major catalyst in shifting trillions of dollars in capital onto the blockchain, paving the way for a more integrated and efficient financial ecosystem.
