Chainlink & GLEIF Team Up to Bring Trusted Identity to Blockchain
Chainlink and the Global Legal Entity Identifier Foundation (GLEIF) have joined forces to tackle the challenge of trusted identity on blockchain networks. This partnership aims to unlock the next phase of tokenized finance, benefiting banks, asset managers, and stablecoin issuers seeking secure counterparty verification while maintaining compliance and user privacy.
Institutional participation in digital assets has been hindered by the difficulty in establishing trusted identities on blockchain networks. The collaboration between Chainlink and GLEIF addresses this by integrating GLEIF's verifiable Legal Entity Identifier (vLEI) into Chainlink's Cross-Chain Identity (CCID) and Automated Compliance Engine (ACE). This creates an automated, privacy-friendly identity verification solution for digital assets, smart contracts, and digital portfolios.
The combined system links verifiable institutional identities with tokenized transactions, helping meet global regulatory standards. It enables secure counterparty verification without disclosing sensitive data. Additionally, GLEIF collaborates with the IOTA Foundation to embed LEI and vLEI into distributed ledger infrastructures like IOTA's TWIN network, creating interoperable and verifiable digital identities for organizations. This allows on-chain trust and combines digital identities with smart contracts and tokenized assets for automated compliance and streamlined processes.
The partnership between Chainlink and GLEIF provides banks and asset managers with a means to issue tokenized assets with verified provenance throughout their lifecycle. By incorporating trusted identity at the infrastructure level, tokenization platforms can expand under clear regulatory guidelines. This collaboration has significant implications for compliance management, asset verification, and regulatory trust across jurisdictions, potentially allowing large-scale institutional capital to move onto blockchain networks.
