As a seasoned analyst with over two decades of experience in the financial industry, I find the collaboration between Chainlink and Coinbase’s Project Diamond to be a significant stride towards the mainstream adoption of digital assets by global institutions. Given my extensive background in traditional finance and blockchain technology, I can confidently say that this integration will undoubtedly contribute to the growth and maturity of the decentralized finance (DeFi) ecosystem.
Chainlink, a blockchain oracle network, has linked up with Coinbase’s Project Diamond, which is Coinbase’s digital asset platform designed for global institutions. This collaboration allows for the provision of data and facilitates the entire lifecycle management of newly tokenized assets on the platform.
Providing data and interoperability
The Project Diamond operates under the jurisdiction of the Financial Services Regulatory Authority (FSRA) within the Abu Dhabi Global Market (ADGM), and is a resident of ADGM’s RegLab sandbox, known as Onchain Marketplace. An upgrade to its implementation is planned during integration.
Peregrine, a business within PSG Digital, overseen by the ADGM, will serve as the premier user of the unified system.
Chainlink ensures seamless data exchange and connectivity among various blockchains, both public and private, as well as traditional financial systems. This is facilitated by Chainlink’s Cross-Chain Interoperability Protocol (CCIP), providing users with secure, compliant solutions.
Coinbase Asset Management deputy chief investment officer Marcel Kasumovich said:
“By integrating the Chainlink standard natively into the Project Diamond platform, powered by Coinbase’s tech stack on Base, we’re paving the way for widespread institutional adoption of digital assets.”
In simple terms, Coinbase Asset Management launched Project Diamond towards the end of 2023, but unfortunately, it’s not accessible for users residing within the United States. On the other hand, Chainlink presented the CCIP (Cross-Chain Interoperability Protocol) in April. This innovative technology enables the transfer of tokens across different blockchain networks and facilitates smart contract communication among them.
Chainlink’s growing use cases
Chainlink Labs, the main developer behind Chainlink, disclosed plans to establish a subsidiary in Abu Dhabi, regulated by the ADGM (Abu Dhabi Global Market) Registration Authority. This move aims to facilitate growth in the Middle East and North Africa (MENA) region.
Angie Walker, Global Head of Banking and Capital Markets at Chainlink Labs, as well as Chainlink Labs Abu Dhabi’s Senior Executive Officer, stated that “The MENA region has emerged as a global magnet for innovators worldwide and a focal point for the integration of on-chain finance.
According to Chainlink, it’s projected that the market for tokenized assets could reach an astounding $10 trillion by the year 2030. In a strategic move, Chainlink has teamed up with SWIFT, enabling users of the traditional messaging system to seamlessly engage with blockchain technology.
In collaboration with the Monetary Authority of Singapore’s Project Guardian, Chainlink has innovated technology enabling users to set their own privacy preferences regarding their data.
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2024-12-11 00:51