Blockchain-based investment products and compliance tools are set to become more than 10 times faster and more affordable than traditional finance (TradFi) solutions, driving greater adoption of digital assets by financial institutions. Traditional financial compliance products are often costly and fragmented due to complex manual procedures, generating billions of dollars in expenses. “Compliance is an inefficient area of the traditional finance industry that many are dissatisfied with, including identity verification processes for AML and KYC, ” Chainlink co-founder Sergey Nazarov told Cointelegraph during the RWA Summit 2025 in Cannes. “When comparing the costs and complexity of executing a compliant transaction in the TradFi space, our industry ought to be able to do it 10 times faster and cheaper, ” he stated.

“This represents a massive cost challenge for TradFi. ” Nazarov noted that addressing this inefficiency could “unlock numerous institutions to deploy capital on-chain. ” Chainlink launches Automated Compliance Engine On June 30, Chainlink introduced its Automated Compliance Engine (ACE), a modular, standardized system for regulatory compliance management across both traditional and decentralized finance (DeFi) protocols. ACE is currently in early access for select institutions, with the ultimate goal of unlocking $100 trillion in new capital to enter the blockchain economy, according to Chainlink. In 2023, financial crime compliance costs for institutions in the US and Canada exceeded $60 billion, based on research by LexisNexis and Forrester Consulting. Related: Bitcoin becomes 5th global asset ahead of “Crypto Week, ” flips Amazon: Finance Redefined RWAs could become more cost-effective than traditional assets Thanks to blockchain efficiencies, investing in traditional assets like equities and commodities is expected to become cheaper via real-world asset (RWA) tokenization. This development may encourage more institutions to adopt RWA investments, Nazarov commented, noting: “If compliance, identity verification, or ongoing renewal and management costs are five to 10 times cheaper in blockchain formats and wrappers, that creates a significant advantage. ” Chainlink’s ACE framework facilitates launching tokenized RWAs with integrated compliance, potentially reducing friction and expenses for institutional investors entering blockchain markets. Related: Bitcoin whale’s $9. 6B transfer, GENIUS Act spark correction concerns “It’s designed to lower the friction and costs of institutional capital transactions on blockchains, ” Nazarov said. On-chain RWAs recently hit a cumulative all-time high exceeding $25. 4 billion across 318, 000 asset holders, excluding stablecoin value, according to data from RWA. xyz.