- Chainlink’s ACE integrates with GL1 to automate regulatory compliance for tokenized financial assets.
- GL1 publishes toolkits to guide development of interoperable, regulation-ready digital asset infrastructures.
- The policy wrapper enables jurisdiction-specific compliance rules for digital tokens across multiple blockchains.
Global Layer One (GL1), a collaborative initiative involving regulators and major financial institutions, has announced its integration of Chainlink’s Automated Compliance Engine (ACE) to strengthen regulatory standards for digital asset transactions.
The partnership aims to establish shared frameworks that align with global compliance requirements while supporting tokenized deposits, securities, and stablecoins. Through this integration, both entities intend to develop infrastructure where verified participants can conduct compliant on-chain activities under enforceable policy frameworks.
Strengthening Compliance
GL1’s collaboration with Chainlink introduces a new approach to digital asset oversight. The Chainlink ACE will operate as the compliance foundation within GL1’s Programmable Compliance (PC) Toolkit.
This toolkit defines how policy and regulatory conditions can be embedded directly into on-chain assets, allowing automated enforcement of financial rules. Each participant, whether a regulator or financial institution, will be assigned a Cross-Chain Identity (CCID), a cryptographic identity used to authenticate verified entities across different blockchains.
Confidential data from participants will remain off-chain, while verifiable proofs are stored on-chain, ensuring privacy and traceability. Together, Chainlink ACE and GL1’s PC framework aim to enable dynamic policy enforcement while maintaining the transparency expected in regulated markets.
This structure allows transactions to comply with jurisdictional requirements automatically, supporting the creation of interoperable and compliant digital asset networks.
GL1’s Global Financial Collaboration Expands
The GL1 consortium has also published two toolkits to support the development of regulated tokenized asset systems. According to the group, these resources focus on programmable compliance and market infrastructure controls.
Institutions participating in GL1 include Euroclear, HSBC, Kinexys by JPMorgan, MUFG, and Société Générale FORGE. Central banks from England, France, and Singapore are also contributing.
Originally introduced by the Monetary Authority of Singapore (MAS), GL1 was conceived as a unified regulatory ledger. However, the project’s scope has evolved into establishing a global network of interoperable standards.
The initiative emphasizes creating frameworks rather than centralized systems, allowing regional networks to remain compatible while following shared compliance guidelines.
Programmable Compliance and Policy Wrapper Design
The PC Toolkit provides a detailed structure for executing compliance on-chain. A notable feature is the policy wrapper, a standalone smart contract that attaches compliance policies to digital assets.
This allows the same token to carry different policy wrappers across jurisdictions. The concept draws from MAS’s Purpose Bound Money and the BIS Project Mandala, where proofs of compliance travel with each transaction.
Working alongside the wrapper, the policy manager coordinates between compliance rule engines, identity systems, and wallet credentials. Many compliance engines operate off-chain to reduce operational costs.
The toolkit also references learnings from Project Guardian, showing practical examples of how policy orchestration functions in hybrid systems that merge on-chain and off-chain components. Together, these developments mark a significant step toward establishing verifiable and programmable compliance within the digital asset sector.
