As the industry-standard decentralized computing platform, Chainlink has enabled over $17 trillion in onchain transaction value. Its comprehensive suite of web3 services makes Chainlink a reliable one-stop shop for a broad spectrum of tokenized real-world asset (RWA) and stablecoin issuers, including leading DeFi protocols such as Paxos and StablR, as well as some of the world’s largest financial institutions such as ANZ and Vodafone.
Today, DBUSD stablecoin issuer Deep Blue announced it will adopt the Chainlink standard to overcome two of the biggest challenges facing new stablecoins: insufficient trust in collateralization and limited cross-chain utility.
Pegged 1:1 to the US dollar, DBUSD is designed to facilitate seamless cross-boarder transactions throughout the international multi-chain economy and is fully backed by offchain cash and near-cash assets, such as US treasuries and money market funds held by a vast network of global banks and custodians.
Deep Blue is integrating Proof of Reserve (PoR), which leverages Chainlink oracles to transparently verify in real time that onchain assets are fully collateralized by offchain assets. This is especially crucial for stablecoins like DBUSD that need to maintain a 1:1 peg to the underlying asset. PoR increases consumer confidence in stablecoins by triggering circuit breakers that prevent new stablecoins from being minted if collateral values dip below a certain threshold.
Chainlink’s Cross-Chain Interoperability Protocol (CCIP) is the industry standard for cross-chain digital asset and data transfer utilized by leading DeFi protocols, DEXs, and traditional financial institutions to unlock new use cases and markets for stablecoins. Deep Blue selected CCIP to power cross-chain transfers of DBUSD because the protocol achieves the highest level of cross-chain security and features a separate Risk Management Network that independently monitors cross-chain functions for suspicious activity.
“We’re excited to leverage the Chainlink standard platform to accelerate the adoption of the DBUSD stablecoin across the multi-chain ecosystem,” said Deep Blue co-founder, Julien Bahurel, in an official announcement. “Proof of Reserve will provide real-time visibility into our offchain reserves, increasing DeFi apps and users’ confidence in DBUSD, while CCIP will help enhance its utility, liquidity, and accessibility.”
“We’re thrilled to support Deep Blue’s new US dollar stablecoin and accelerate its adoption by providing visibility into its offchain reserves and enabling cross-chain connectivity,” added Niki Ariyasinghe, Head of Business Development, Asia-Pacific and Middle East at Chainlink Labs. “Chainlink infrastructure will play a key role as Deep Blue grows the use of DBUSD across the world.”