IDA Finance is integrating Chainlink’s Proof-of-Reserve (PoR) and Cross-Chain Interoperability Protocol (CCIP) into the HKDA stablecoin for enhanced transparency and security. Chainlink’s CCIP has emerged as a standard solution for Web3 projects, with an average of $900,000 worth of tokens being sent cross-chain every day.
Hong Kong-based digital asset issuer IDA Finance has announced that it will integrate Chainlink’s blockchain services into its upcoming HDKA stablecoin backed by the Hong Kong dollar. The latest news release today, October 9, states that the move aims to improve transparency while ensuring cross-chain operation of fiat-backed stablecoins.
One of the main reasons behind this partnership is the integration of Chainlink’s Proof-of-Reserve (PoR) technology, which enables on-chain verification of assets supporting the HKDA stablecoin. As reported by CNF, Chainlink’s Proof-of-Reserve mechanism also supports cross-chain applications, making token minting secure by validating collateral and complementing institutional audit processes.
How does Chainlink PoR enhance the security of stablecoins?
Chainlink’s Proof-of-Reserve allows users and investors to verify the assets backing the HKDA stablecoin, increasing transparency into the reserve assets maintained by IDA.
Monitoring the collateral supporting the HKDA is essential to mitigating the risks associated with insufficient reserves. This helps to further increase the reliability of stablecoins in volatile markets. Additionally, apart from integrating Chainlink’s PoR, IDA plans to further incorporate Chainlink’s Cross-Chain Interoperability Protocol (CCIP).
IDA co-founder and chief strategy officer Sean Lee said in a statement that the integration will improve “the accessibility of HKDA by making it available on multiple chains.” . Additionally, CCIP integration will facilitate the use of the HKDA stablecoin on several decentralized finance (DeFi) platforms, payment systems, and exchanges, expanding its market reach. Lee said IDA sees this as a way to provide “enhanced assurances regarding the stability and support of the HKDA.”
Many companies in the Web3 space have integrated Chainlink CCIP solutions. CNF reports that Chainlink’s Cross-Chain Interoperability Protocol (CCIP) is increasingly likely to emerge as a standard solution for Web3 projects, as indicated by the daily average of all tokens transferred between chains. CCIP currently generates an average of $900,000 per day and processes over 50,000 requests each month.
link price analysis
Chainlink (LINK) price has been under selling pressure for some time and is currently trading 4.78% lower at $10.60, giving it a market cap of $6.6 billion. Despite a strong September, LINK prices remained relatively flat.
Nevertheless, market analysts remain positive on LINK, adding that the current price consolidation between $9 and $11 presents a great buying opportunity, CNF reported. Van de Poppe highlighted that Chainlink has successfully turned a major resistance level into support on the weekly chart, indicating a bullish trend. With this momentum, LINK could reach $35.29 in the near future and challenge the all-time high of $52.88.
