TLDR:Chainlink ACE integrates compliance checks directly into smart contracts.Institutions can reuse existing KYC/AML tools on public and private chains.Cross-Chain Identity Framework secures credentials without storing personal data.ACE reduces development time with templates, SDKs, and sandbox testing tools.Chainlink has introduced a new compliance framework aimed at helping financial institutions move confidently into the digital asset space. The Chainlink Automated Compliance Engine (ACE) is designed to support both traditional and decentralized finance, providing modular tools for integrating regulatory checks across blockchain networks. This new platform, built on the Chainlink Runtime Environment (CRE), seeks to simplify the enforcement of compliance policies without compromising innovation. By offering customizable, interoperable systems, Chainlink aims to unlock over $100 trillion in institutional capital. The initiative was launched in partnership with Apex Group, the Global Legal Entity Identifier Foundation (GLEIF), and ERC3643.Chainlink ACE Targets Compliance at ScaleChainlink stated that ACE can streamline how compliance is handled on blockchain networks, both public and private. According to the team, it supports a wide range of use cases, including identity checks, cross-chain collateral, and asset settlement.Introducing Chainlink Automated Compliance Engine (ACE)—a unified & modular standard to solve all onchain compliance problems and bring institutional capital onchain.ACE is built on the Chainlink Runtime Environment (CRE) & launched in collaboration with leading market…— Chainlink (@chainlink) June 30, 2025The platform allows developers and institutions to integrate existing financial compliance frameworks directly into smart contracts. Chainlink says this modular architecture ensures flexibility, enabling organizations to deploy only the features they require. Institutions can reuse their current KYC systems, identity providers, and regulatory infrastructure without starting from scratch.The ACE suite includes several core components that connect real-world identity and compliance with digital assets. Chainlink introduced a Cross-Chain Identity Framework to help represent investor credentials securely across chains. This supports credentials like AML and KYC without storing personal data on the blockchain.Another key component is the Policy Manager, a rules engine that lets institutions enforce compliance policies in real-time. The Identity Manager middleware connects traditional identity systems with onchain environments. Additionally, the Monitoring and Reporting Manager helps track compliance activity, flag irregularities, and produce regulatory reports.Developer Experience Designed for EfficiencyTo speed up adoption, Chainlink has equipped ACE with templates, SDKs, and admin tools that reduce development time. Developers can build once and deploy anywhere, which avoids the need for repetitive coding or chain-specific adjustments.The Compliance Sandbox allows institutions to test policies and workflows before going live. ACE’s design ensures asset, jurisdiction, and chain agnosticism, enabling broad compatibility across financial ecosystems. Chainlink emphasized that its solution avoids vendor lock-in and can evolve with changing regulations.With ACE, Chainlink aims to remove the technical and regulatory hurdles that slow institutional adoption of blockchain. By offering a unified standard for compliance, the project is positioning itself as a key infrastructure provider for regulated digital finance. As the crypto industry continues its push into mainstream markets, tools like ACE could become vital in ensuring both innovation and legal alignment. The post Chainlink Unveils Automated Compliance Engine to Bridge Traditional Finance and Crypto appeared first on Blockonomi.