GLEIF has announced its partnership with Chainlink in order to bring an institutional-grade identity solution to the blockchain industry.
Following this announcement, by combining Global Legal Entity Identifier Foundation’s verifiable Legal Entity Identifier (vLEI) with Chainlink’s Cross-Chain Identity (CCID) and Automated Compliance Engine (ACE), the solution is expected to embed verifiable organisational identity directly into onchain wallets, smart contracts, and tokenised assets.
In addition, this strategy aims to remove one of the barriers that exists in the process of institutional adoption of digital assets – the overall lack of a trusted identity onchain. With this partnership, institutions, stablecoin issuers, and trading venues will have the possibility to meet regulatory requirements, automate compliance, as well as verify counterparties across jurisdictions while safeguarding user privacy.
More information on the GLEIF x Chainlink partnership
According to the official press release, with trusted identity and compliance embedded at the protocol level, the collaboration is set to enable banks, asset managers, and digital asset platforms to confidently scale tokenised finance and unlock significant institutional capital flows onchain. At the same time, both institutions will continue to focus on meeting the needs, preferences, and demands of clients and users in an ever-evolving market, while prioritising the process of remaining compliant with the regulatory requirements and laws of the industry as well.
This partnership follows Chainlink’s partnership with 21X, which secured several DeFi projects and has enabled multiple transaction values with Chainlink’s infrastructure in place. Furthermore, 21X's market data was set to be automatically retrieved from onchain contracts, aggregated, and published in a standardised, machine-readable format on the Polygon network. The Chainlink standard also allowed 21X to securely and reliably bring real-time, verifiable market data for tokenised securities onchain, while the process of integrating Chainlink into its regulated DLT trading venue enabled 21X to focus on delivering the transparency, auditability, and collateral utility that institutions require to move onchain.
