Hong Kong-based IDA integrates the HKDA stablecoin with Chainlink to facilitate secure cross-chain operations.
To improve cross-chain operability and protect assets, IDA Finance is incorporating Chainlink’s Proof of Reserves and CCIP products.
The Hong Kong-based digital asset issuer IDA Finance stated that it is adopting Chainlink’s blockchain services to develop its HKDA stablecoin, which will back the Hong Kong dollar.
The aim of the move, as stated in an Oct. 9 press release, is to bolster transparency and safeguard cross-chain transactions for the fiat-backed stablecoin.
The collaboration hinges on integrating Chainlink’s Proof-of-Reserves (PoR) system, which provides on-chain asset verification for the HKDA stablecoin.
However, with Chainlink’s PoR technology, users and investors can verify the assets supporting HKDA, which promotes transparency regarding the reserve assets that IDA maintains.
By monitoring the collateral behind HKDA, IDA minimizes the risks of having insufficient reserves, which can also bolster the credibility and security of stablecoins during market volatility.
Along with integrating Chainlink’s PoR technology, IDA will implement the Cross-Chain Interoperability Protocol (CCIP) provided by the Oracle service.
Sean Lee, the co-founder and chief strategy officer at IDA, mentioned in the release that this integration would broaden “accessibility to HKDA by making it available across various chains.”
Furthermore, with the incorporation of CCIP, HKDA can be employed on decentralized finance (DeFi) platforms, exchanges, and payment systems, increasing its market reach.
Read also: Chainlink CCIP goes live on ZKsync Era mainnet
In Lee’s words, IDA regards this as a means to deliver “enhanced assurances regarding the stability and backing of HKDA.”
A report by Chainlink, released on Sept. 17, stated that nearly 9% of the total cryptocurrency value received globally between July 2023 and June 2024 originated from East Asia.
In an interview, Maruf Yusupov, co-founder of Deenar—a digital stablecoin backed by physical gold—asserted that stablecoins and crypto are “gradually replacing fiat.”
Yusupov pointed to “lower barriers of entry,” improved usability, and decreased costs as factors driving this change, adding that continued adoption could result in users departing from traditional banking institutions.
