Global Layer One (GL1) has published a white paper featuring Chainlink's Automated Compliance Engine (ACE) as a solution for regulated tokenized assets.​

Key Contributors:

• Bank for International Settlements Innovation Hub
• International Monetary Fund
• Banque de France
• Monetary Authority of Singapore
• J.​P.​ Morgan's Kinexys
• Standard Chartered Bank

ACE Capabilities:

• Separates compliance rules from application logic
• Updates policies without redeploying smart contracts
• Links wallet addresses across networks to a single identity
• Performs offchain risk scoring with onchain verification

The paper addresses the growing need for programmable compliance as financial institutions adopt tokenized assets.​ Cross-Chain Identity (CCID) eliminates duplicate onboarding processes across different networks.​

A crypto bank is launching a solution that allows traditional financial institutions to offer continuous payments and settlement services around the clock.​

The key innovation is that banks can adopt this capability without replacing their existing core banking systems - addressing a major barrier to blockchain adoption in traditional finance.​

This builds on earlier developments in the institutional crypto space:

• In March, Visa announced plans to help banks integrate stablecoin payments and settlement on-chain
• The Visa solution emphasized privacy preservation on institutional blockchain networks
• Both initiatives focus on making blockchain infrastructure compatible with existing financial systems

The approach represents a pragmatic path for traditional institutions to access blockchain benefits - 24/7 availability, faster settlement, and programmable money - while maintaining their current technology investments and regulatory frameworks.​

This integration strategy could accelerate institutional adoption by reducing implementation costs and technical complexity.​

Regulatory frameworks for stablecoins are now taking concrete shape as MiCA goes live in Europe and the GENIUS Act progresses in the US.​

The emerging compliance standard centers on three requirements:

• Fiat collateralization
• Full redeemability
• Regular auditing

Institutions building data infrastructure to support these compliance requirements are positioning themselves ahead of final rule implementation.​ Those delaying infrastructure development may face challenges when regulations become enforceable.​

The regulatory shift follows 2025's GENIUS Act, which brought stablecoins like USDC into the regulated financial system with clear operational guidelines.​ This has enabled institutions to move beyond pilot programs into production deployments across payments, treasury operations, and capital markets.​

Read more about stablecoin compliance infrastructure