Chainlink Proof of Reserve (PoR) uses the blockchain industry-standard decentralized oracle network, which has facilitated over $9 trillion in transaction value, to verify that onchain assets are fully collateralized by cross-chain or offchain “real-world” assets.
Since last year’s FTX collapse, a growing number of DeFi protocols and traditional financial institutions are working to adopt PoR as a new minimum standard for cryptographically proving how onchain assets are collateralized in near real time.
One of the latest to integrate PoR is StablR, a global financial technology company that issues the fully collateralized Euro stablecoin, EURR. PoR offers users a transparent view of both the onchain asset and offchain collateral to ensure the total supply of EURR does not exceed the total amount of Euros held in reserve at any time.
StablR Founder and CEO Gijs op de Weegh told Chainlink Today that PoR supports StablR’s goal of fostering a robust and collaborative ecosystem that accelerates the use of Euro-backed stablecoins.
“The integration of Chainlink PoR into StablR is a big step forward in ensuring transparency, credibility, and trust within the Euro stablecoin ecosystem,” he said.
“One of the most exciting aspects of this integration is the establishment of an independent and verifiable confirmation of StablR’s reserves. In the realm of stablecoins, where maintaining a 1:1 peg is crucial, the ability to offer trustworthy proof of reserves is critical for widespread adoption.”
Op de Weegh said StablR is prioritizing regulatory-compliant innovation on the path toward a global financial system that optimizes new technology and legacy infrastructure. He believes Chainlink’s suite of web3 services including PoR, Price Feeds, and Cross-Chain Interoperability Protocol (CCIP) establishes a comprehensive framework for the future of StablR and the broader tokenized asset space.
“The assurance of a sound financial standing through proof of reserves, coupled with real-time price information and cross-chain compatibility, creates an environment where businesses can confidently build and rely on Euro stablecoins as a fundamental component of their operations,” he explained.
As CCIP enables banks to create, buy, and sell tokenized assets across an array of private and public blockchains, Op de Weegh said Chainlink is accelerating not only the mainstream adoption of DeFi, but the creation of a more efficient global financial system.
“As DeFi continues to evolve and gain prominence, the need for a robust and secure connection between decentralized protocols and traditional financial systems becomes increasingly important,” he said. “This could lead to a more harmonious coexistence of DeFi and traditional finance, fostering a collaborative ecosystem that leverages the strengths of both worlds.”