Coinspeaker IDA Finance Taps Chainlink for Hong Kong Dollar-Backed HKDA Stablecoin
Hong Kong-based digital asset issuer IDA Finance is gearing up for the launch of its upcoming stablecoin HKDA, which is backed 1:1 to the value of the Hong Kong dollar. On Wednesday, the company announced that it has selected Chainlink as its technical partner.
Through this collaboration, IDA will integrate Chainlink’s industry-standard services for tokenized assets to enhance the transparency and security of HKDA. This includes Chainlink’s Proof of Reserve (PoR) and Cross-Chain Interoperability Protocol (CCIP).
Building Trust in the Crypto Market
According to the announcement, the integration of the PoR into HKDA is aimed at providing users with real-time verification of the reserves backing the stablecoin. The tool will ensure that all circulating HKDA tokens are fully collateralized by reserves held in regulated Hong Kong-based financial institutions.
IDA believes that incorporating the PoR system will help build trust among users by offering secure and reliable on-chain data regarding HKDA’s collateralization.
As for CCIP, the system will facilitate the secure transfer of data and value across different blockchain networks. This integration will allow HKDA to operate seamlessly across multiple blockchains, enhancing its utility and accessibility in various decentralized finance (DeFi) ecosystems.
With the implementation of this tool, HKDA will become more versatile as a payment and settlement tool, with broader applications in cross-border transactions and institutional trading.
Future Plans and Business Expansion
In addition to integrating Chainlink’s innovative solutions, IDA is currently working with other traditional financial institutions, banks, crypto exchanges, and retail businesses to boost HKDA’s adoption upon launch.
The move aims to expand HKDA’s utilities outside the Hong Kong market to other parts of the world. The company said the digital asset will be a stable payment option and trading instrument designed to hedge against inflation.
IDA envisions HKDA becoming a widely accepted digital asset for transactions between Hong Kong and international markets, offering 24/7 accessibility for seamless commerce. The HKDA stablecoin represents IDA’s first major product launch, and the company has ambitious plans to expand its offerings.
As per the announcement, future products will include stablecoins pegged to other major fiat currencies, starting with US dollar-pegged stablecoins. The products will be developed in collaboration with major financial institutions and Web3 platforms in the industry.
IDA Secures $6 Million in Seed Funding
IDA’s plan to issue HKDA follows the recent efforts of the Hong Kong Monetary Authority (HKMA) to regulate the stablecoin market. In July, HKMA completed its public consultation on the matter, paving the way for introducing a regulatory framework through a sandbox program.
Shortly after these developments, IDA raised $6 million in seed funding to accelerate the development of HKDA in compliance with local regulations. This funding round saw contributions from notable investors such as Hack VC, Anagram, GSR, and Protagonist, alongside angel investors, including Solana co-founder Raj Gokal.
Beyond the financial backing, IDA has also partnered with blockchain protocols like Solana, Polygon, and Aptos to enhance HKDA’s interoperability, accessibility, resilience, and liquidity, solidifying its role in the global digital asset market.
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IDA Finance Taps Chainlink for Hong Kong Dollar-Backed HKDA Stablecoin
