SmartCon on-site exclusive: How fund managers, payment Settlement companies use AI, Blockchain for financial transformation

Hong Kong SmartCon debuted on 10/30~10/31, this article is a special correspondent of the mobile area selected topics at the scene, facing the large-scale bank practitioners who do not understand the block practice, Franklin, Swift and Euroclear and Chainlink talk about how traditional banks use the trend of web3 and AI, the cost of dropping bank operations, the transformation to modernize, and also talk about how to deal with regulatory risks. (Synopsis: Diverting 100 trillion dollars to parachute web3, an article to understand Chainlink's huge ambition to lay out the TradFi track) (Background supplement: Meet the 867 trillion magnesium traditional institutional tokenization business opportunity!) Chainlink Hong Kong "SmartCon" kicks off TradFi first battle ) Organized by decentralized oracle Chainlink SmartCon was grandly launched at Kerry Hotel, Hong Kong during 10/30~10/31, welcoming many heavyweight international TradFi giants, which can be said to be the first large-scale dialogue meeting between web3 and TradFi industry milestones, and the special commissioner of the moving area is also on 10/30 This article will introduce the topic of "Modernizing Corporate Behavior in Today's Asset Management Companies". Opening with guests Ryan Lovell: Well, thank you all for joining this panel, we're really sitting on the same panel right now... This panel revolves around the modernization of financial corporate actions. While this in itself is a very boring topic, however, we recently worked with these three companies to actually solve the corporate action problem in a very interesting way, combining new architectures around the use of artificial intelligence, oracles, and blockchain to create a faster and more effective way to solve the corporate action problem. Therefore, today's Panel process will be divided into three parts, and today we will talk about the challenges of corporate actions; Again, we're going to talk about solutions, which is the initiative I just described; Finally, we'll talk a little bit about where we're going in the future. So to introduce you to the people I'm sitting with and some of my panelists, so we have Stéphanie Lheureux from Euroclear, who is the head of digital assets at Euroclear, an international securities custody and settlement company. They hold 40 trillion euros in custody assets, and they settle transactions worth 1 trillion euros a year, oh four trillion dollars, I'm right. We also have Whikie Liu from Swift, who is the Director of Strategy at Swift's Capital Market, a global messaging system and financial trading system. They connect more than 11,000 banks and financial institutions in more than 200 countries, and they process about 50 million messages and transactions every day. Last but not least, we have Andrew Crawford, vice president of digital assets at Franklin Templeton, a global investment asset manager with approximately $1.7 trillion in assets under management and operating in more than 165 different countries. Guest List: Swift Capital Market Director Whikie Liu Euroclear Digital Asset Manager Stéphanie Lheureux Franklin Tamburton Vice President of Digital Assets Andrew Crawford Chainlink Capital Market Director Ryan Lovell TradFi's Corporate Action Challenge into Blockchain Technology Adoption Ryan Lovell: So many guests, It's all about talking here about the problems and challenges encountered in corporate actions, which have been an ongoing challenge for financial markets for many years, what makes this issue especially important to solve this problem now, especially as we move towards tokenization assets? So why is this really an interesting question at this time? This matter has been talked about for some time. Maybe I'll start with Stéphanie in the market, and I think we'll start with you. Stéphanie: Yes, everyone, first of all I'm not sure, when we talk about corporate actions, does everyone know what we're talking about? Is a corporate action anything that happens in the life cycle of a security, should it be a bond or something like that? If you have different types of corporate actions, which are very valuable to the company, such as dividends or coupons, each of which is very valuable, especially if you have some more exotic activities and very corporate actions. Interestingly, at least for the notification part, this is material, which is public material from the issuer, but this information must be distributed and passed through the entire value chain until the investor buys it. We do this by transmitting this information from one entity to another through messages, and when you are a buyer at the end of the value chain, you receive this information from various participants, but sometimes the information is inconsistent. You have some differences that should be different from the same information; Sometimes you receive it from one side rather than the other, so you don't know which is correct. So it's a problem for everyone in this delivery chain, especially for buyers, and as financial market infrastructures, we're concerned with solving the industry problems of infrastructure users. But it's also a problem for us as CSDs, custodians, and our participants. We're all doing the same thing, which means receiving corporate action events, processing, verifying data, re-establishing and resending data. This will not bring value, the value will be to own the source of gold and give all participants in the Capital Market access to the same source of gold. Whikie Liu: That's really what we work on in the best possible way. Yes, if you can, I think as Ryan mentioned, collaboration isn't really a new challenge for the industry. As Stéphanie mentioned, this industry has been around for many years because there is a lot of unstructured data that needs to flow into buyers and deal with it. So you can imagine that in between, there are a lot of time inconsistencies and data quality issues. But we have been talking about it for many years, so why are we talking about it now, and why, from today, it has become more urgent and important. I think there are some industry trends that are really driving the need for change, for example, the first will shorten the second cycle of secure transactions. The shape of the US T+1, you can also see many announcements in different countries that want to shift the security second cycle from T+2 to T+1. That has shortened the timeline for collaboration, and the industry is striving for a faster and larger turnaround for collaborative processing. The other is that we can also see another regulatory push for transparency and standardization. In the EU, for example, SRT2 regulations, they are indeed positive compliance requirements for shareholder transparency. We're also seeing a lot of security market structures that are either updating or planning to update their collaboration materials to ISO 20022. So all of this means that the industry really wants to get into automation and standardization. The last, and certainly not the most important, is the rise of digital assets. I'm sure most of you (web3) here know how...