IDA Finance, a Hong Kong-based digital asset technology company, is integrating Chainlink to increase the transparency of its upcoming HKDA stablecoin.
Chainlink’s blockchain services continue to attract enterprises amid rising adoption of institutional tokenized assets.
IDA Finance Incorporates Chainlink Services for HKDA Stablecoin
Hong Kong’s fiat-pegged stablecoin issuer is interested in Chainlink’s industry-standard services for tokenized assets. The interest comes as the IDA plans to issue the HKDA stablecoin, backed 1:1 by the Hong Kong dollar, as confirmed by Chris Barrett, Chief Communications Officer at Chainlink.
Specifically, IDA Finance targets Chainlink’s Proof of Reserve (PoR) and Cross-Chain Interoperability Protocol (CCIP). These services will help verify asset collateralization and securely move data and value across chains, respectively.
Read more: What is a stablecoin? A beginner’s guide
Upon launch, and as enabled by the Chainlink PoR, HKDA stablecoin users will be able to see the reserves backing the stablecoin. Similarly, the CCIP will allow IDA to securely mobilize the stablecoin across multiple blockchains.
Together, the integration will increase the utility and accessibility of the HKDA stablecoin.
Ahead of the launch, IDA is already working with leading financial institutions on the use of the HKDA stablecoin as a secure payment vehicle and institutional trading instrument in digital asset markets. Existing partners include banks, traditional and virtual asset exchanges, retail companies, and real-world asset (RWA) issuers.
“Chainlink is the industry standard for verifying the collateralization of digital assets onchain and moving them between chains. [It will provide] our ecosystem partners with enhanced assurances on the stability and backing of HKDA. [It will also provide] greater accessibility to HKDA by making it available across multiple chains,” an excerpt from the press release reads, quoting IDA co-founder and CSO Sean Lee.
Alliance inspires partnerships
In fact, Chainlink’s industry-standard services for tokenized assets continue to attract players from the traditional financial sector. In addition to IDA, another player that has adopted the services is Taurus, a Swiss crypto custody and trading company.
As reported by BeInCrypto, the Taurus platform will utilize Chainlink’s offchain data, PoR, and CCIP to accelerate adoption and boost liquidity across multiple blockchain networks.
Similarly, liquidity restocking protocol Bedrock has integrated Chainlink’s PoR as a security measure to maintain investor confidence amid anticipated growth. The decision followed a major exploit on September 26 involving uniBTC.
21.co, the parent company of 21Shares, has also integrated Chainlink’s PoR on Solana and Ethereum to increase the transparency of its 21BTC Wrapped Bitcoin.
On the stablecoin front, as in the case of IDA Finance, Chainlink has teamed up with Fireblocks. The collaboration has enabled the secure and regulated issuance of stablecoins for financial institutions around the world. Additionally, Sony’s Soneium has integrated Chainlink’s CCIP as its core infrastructure to support the growth of the blockchain across multiple chains.
These partnerships are in line with Chainlink CEO Sergey Nazarov’s vision for tokenization, which he predicts will see tokenized real-world assets (RWAs) surpass cryptocurrencies in value as traditional finance (TradFi) interest in DeFi grows.
The interest is driven by tokenization’s ability to address challenges, ranging from infrastructure and costs to transactional efficiency, that plague TradFi.
“The ability to tokenize RWAs simplifies transactions and reduces costs. It also improves market efficiency by making it easier for businesses to manage and trade their assets. This innovation will undoubtedly stimulate the economy and transform the financial space,” added IDA’s Lee.
It is worth mentioning that IDA Finance has operational plans for the HKDA stablecoin beyond its borders. According to the press release, subsequent phases could see denominations in other currencies pegged to the US dollar (USD).
The article Company integrates Chainlink to issue HKDA stablecoin was first seen on BeInCrypto Brasil.
