IDA, a Hong Kong-based fiat-referenced stablecoin issuer, is integrating Chainlink’s services for tokenized assets.
As mentioned in a blog post, those reportedly include Chainlink Proof of Reserve (PoR) for verifying asset collateralization as well as the Chainlink Cross-Chain Interoperability Protocol (CCIP) for the “secure” movement of cross-chain data and value to support its HKDA stablecoin issuance, which will reportedly be “backed 1:1” by the Hong Kong dollar.
As explained in the update, the Chainlink integration gives HKDA users enhanced visibility into the reserves backing the stablecoin via Chainlink’s secure and reliable onchain PoR data.
IDA intends to integrate Chainlink CCIP, which should allow IDA to mobilize HKDA across blockchains, thus improving the digital token’s utility as well as accessibility.
Sean Lee, co-founder and CSO of IDA said that Chainlink is considered to be the standard for verifying the “collateralization” of digital assets onchain and moving them cross-chain, offering partners with improved “assurances” regarding the “stability” as well as “backing” of HKDA, along with increased accessibility to HKDA by making it “available across various chains”
IDA is working with financial institutions, banks, traditional exchanges, virtual asset exchanges, retail businesses, and real-world asset (RWA) issuers on the use of HKDA as a “secure payments vehicle” and institutional trading instrument in digital asset markets.
Angie Walker, Global Head of Banking and Capital Markets at Chainlink Labs said their goal is to support the adoption of HKDA as a payments vehicle for cross-border transactions and support the development of tokenized real-world assets.
As stated in the announcement, IDA is the digital asset tech firm to spearhead the widespread adoption of blockchain finance and to empower companies and service providers to integrate between Web2 and Web3.
HKDA, a fiat-referenced stablecoin built on public blockchain protocols, will be the first product launched by IDA.
HKDA is designed to drive enhanced digital connectivity for seamless commerce and payments between Hong Kong and global markets, 24/7/365.
As clarified in the update, all “circulating” HKDA will “always” be “fully” backed by “at least 100% reserve assets” in regulated Hong Kong based authorized institutions.
To improve the network effect of HKDA for domestic and cross-border usage, IDA is reportedly working with key industry players to facilitate the minting, redemption and widespread acceptance of HKDA as a payment and settlement digital currency.
In the following phases, IDA will be introducing products denominated in other US Dollar (USD) pegged currencies with ecosystem partners across regulated financial institutions and Web3 platforms.
As covered, Chainlink says that it is the platform for enabling the “future” of global markets onchain.
Chainlink has enabled $15T+ in transaction value by offering FIs, startups, and developers with access to real-world data, offchain computation, and cross-chain interoperability.
Chainlink supports “verifiable” applications and “high-integrity” markets for banking, DeFi, international trade, gaming.