Blockchain oracle data provider Chainlink has partnered with RD Technologies, a company working on developing a Hong Kong dollar stablecoin called HKDR.
RD Technologies is integrating Chainlink CCIP (Cross-Chain Interoperability Protocol) and Proof of Reserve (PoR) to support its Hong Kong dollar stablecoin, the cryptocurrency oracle solutions provider announced on May 7.
Chainlink’s cross-chain interoperability protocol will be integrated to enable secure and reliable cross-chain transfers of HKDR and make the new stablecoin more accessible.
Additionally, the company has adopted Chainlink’s Proof of Reserves (PoR) to help provide reliable on-chain verification of HKDR reserve backing, according to the announcement.
Chainlink moves deeper into the RWA space
The goal of the collaboration is to enable more businesses and merchants to use HKDR to settle payments, enjoy faster and lower-cost cross-border payments, and use the stablecoin to reliably transfer tokenized real-world assets (RWA).
The Hong Kong-based fintech company said it has reached agreements with “several globally renowned cross-border payment, virtual asset and wealth management players” to use the HKDR for cross-border payments.
Rita Liu, CEO of RD Technologies, said that “the integration will help promote the adoption of HKDR in cross-border payments, tokenization of real-world assets, and other on-chain financial applications.” She added that it will also help promote Hong Kong’s development as a global Web 3 and virtual asset hub.
Colin Cunningham, who is responsible for RWA and alliances at Chainlink Labs, said:
“Using HKDR to settle transactions between chains will accelerate the adoption of tokenized assets and enable faster and lower-cost cross-border payments.”
Chainlink CCIP allows smart contracts to securely access data from external systems to facilitate trusted data connections between blockchains.
In April, Chainlink released a new CCIP-powered cross-chain bridge application “Transporter” to improve the security of token transfers.
On May 6, Chainlink’s adoption update showed that four Chainlink services had achieved a total of seven integrations on three different chains: Arbitrum, BNB Chain, and Polygon.
LINK Price Outlook
The network’s native token, LINK, did not react to the news. However, the asset is down 2% on the day at $14.28 at the time of writing, amid a broader altcoin market pullback.
LINK’s price has been weak recently, falling nearly 30% over the past month as the cryptocurrency market retreats from its mid-March highs.
LINK is down 73% from its all-time high of $52.70 in May 2021 and has failed to gain much traction in 2024 despite Bitcoin hitting a new all-time high.
However, analysts predict that altseason is approaching, when such assets typically perform well. #Chainlink #HKDR
