IDA Finance, a Hong Kong-based digital asset issuer, said it will integrate Chainlink’s blockchain services into its upcoming Hong Kong dollar-backed stablecoin, HKDA. According to a press release on October 9, the move aims to increase transparency and ensure the security of cross-chain transactions for the fiat-backed stablecoin.
A key part of the collaboration is the implementation of Chainlink’s Proof-of-Reserves (PoR) technology, which enables on-chain verification of the assets backing HKDA. PoR technology ensures that users and investors can verify the assets backing HKDA, providing transparency into the reserve assets backed by IDA. Monitoring the collateral of HKDA helps mitigate reserve shortages and can ensure the reliability and security of stablecoins in a volatile market.
Along with the Chainlink PoR integration, IDA will also integrate the Cross-Chain Interoperability Protocol (CCIP). In a press release, Sean Lee, co-founder and chief strategy officer of IDA, said the integration will increase the availability of HKDA by making it available on multiple chains. The CCIP integration will allow HKDA to be used on decentralized finance (DeFi) platforms, exchanges, and payment systems, giving it broader market reach. According to Lee, IDA sees this as a means of establishing stronger guarantees regarding the stability and support of HKDA.
Image: Binance Academy
