Coinbase’s Project Diamond has recently announced its adoption of the Chainlink Standard in order to drive institutional adoption of digital assets. This development was shared in a statement with CryptoSlate on December 10.
Project Diamond, which is managed by Coinbase Asset Management, is specifically focused on catering to institutional users outside of the US market. The initiative utilizes a robust infrastructure that includes Coinbase Prime custody, the Prime Onchain Wallet, the Project Diamond platform, USDC, and the exchange’s Ethereum layer-2 network, Base. It is regulated by the Financial Services Regulatory Authority of the Abu Dhabi Global Market (ADGM) under the trade name Onchain Marketplace.
The integration of Chainlink into Project Diamond will enable the platform to offer tokenized asset services, providing asset issuers and fund managers with a secure and compliant solution for scaling their operations. Peregrine PSG Digital, a regulated ADGM entity, has been selected as the flagship user for this initiative.
This strategic move caters to the increasing demand within the cryptocurrency sector for reliable data, including market prices, proof of reserves, and AML/KYC information. It also addresses the necessity for cross-chain interoperability and seamless integration with traditional financial systems, thereby enhancing secondary market access and liquidity.
By leveraging Chainlink’s Cross-Chain Interoperability Protocol (CCIP), Project Diamond will be able to facilitate seamless cross-chain operations for new assets. Additionally, Chainlink Functions will enhance tokenized assets with real-world, verifiable data across multiple blockchains.
Johann Eid, Chief Business Officer at Chainlink Labs, emphasized the significance of end-to-end lifecycle management for tokenized assets. He highlighted how this collaboration empowers asset issuers and financial institutions to effectively leverage secure and interconnected blockchain solutions.
Furthermore, this development signifies Chainlink Labs’ expanding presence in the MENA region. In conjunction with the announcement, Chainlink Labs revealed the establishment of an office in Abu Dhabi under the Registration Authority of ADGM. This local expansion aims to cultivate strategic partnerships with financial institutions and promote the adoption of blockchain solutions on a global scale.
Hamad Sayah Al Mazrouei, CEO of the ADGM Registration Authority, underscored the growing demand in the region for blockchain-based financial solutions. He emphasized Abu Dhabi’s conducive environment for supporting the advancement of innovative technologies like the Chainlink Standard.
In conclusion, the integration of the Chainlink Standard into Project Diamond represents a significant step towards enhancing institutional adoption of digital assets and fostering blockchain innovation in the MENA region.