As the industry-standard decentralized computing platform, Chainlink has enabled over $15 trillion in transaction value and provides a comprehensive set of services that are critical for creating and securing tokenized real-world assets (RWAs) and stablecoins capable of scaling onchain finance to billions of global users.
Today, IDA, a Hong Kong-based, fiat-referenced stablecoin issuer, announced it is integrating Chainlink’s Proof of Reserve (PoR) and Cross-Chain Interoperability Protocol (CCIP) to support its forthcoming HKDA stablecoin, which is backed 1:1 by the Hong Kong dollar.
PoR leverages Chainlink oracles to verify in real time that onchain assets are fully collateralized. This is especially crucial for stablecoins that need to maintain a 1:1 peg to the underlying asset. By transparently proving onchain assets are fully collateralized and triggering circuit breakers that prevent new stablecoins from being minted if collateral values dip below a certain threshold, PoR increases consumer confidence in stablecoins like HKDA.
CCIP is the industry standard for cross-chain digital asset and data transfer, which achieves the highest level of cross-chain security and features a separate Risk Management Network that independently monitors cross-chain functions for erroneous activity. CCIP will allow IDA to mobilize HKDA across multiple blockchains, significantly enhancing its adoption and utility.
IDA is currently collaborating with leading financial institutions, banks, traditional exchanges, virtual asset exchanges, retail businesses, and RWA issuers to promote the use of HKDA as a secure payments vehicle and institutional trading instrument in digital asset markets.
“Chainlink is the industry standard for verifying the collateralization of digital assets onchain and moving them cross-chain, providing our ecosystem partners with enhanced assurances regarding the stability and backing of HKDA, as well as increased accessibility to HKDA by making it available across various chain,” said Sean Lee, co-founder and CSO of IDA.
“The ability to tokenize RWAs not only streamlines transactions and reduces costs, but also enhances market efficiency, making it easier for businesses to manage and trade their assets. This innovation will undoubtedly stimulate the economy and transform the financial landscape.”
“We are excited to be IDA’s technical partner and provide a solution that enables greater visibility into the asset collateralization behind the stablecoin while powering secure cross-chain movement,” added Angie Walker, Global Head of Banking and Capital Markets at Chainlink Labs.
She reemphasized the message Chainlink co-founder Sergey Nazarov delivered in his recent EthCC keynote, which outlined the growth of Chainlink-powered RWAs and the path toward reformatting the world’s value onchain.
“Our goal is to not only advance the adoption of HKDA as a payments vehicle for cross-border transactions but also support the development of tokenized real-world assets,” said Walker.
“Tokenized money, including stablecoins, has the potential to unlock quadrillions of dollars of tokenized assets, bringing more liquidity to the market.”