IDA integrates Chainlink to improve transparency of HKDA Stablecoin
IDA, a fiat-referenced stablecoin issuer based in Hong Kong, is integrating Chainlink's industry-standard tokenized asset services. These consist of the Chainlink Cross-Chain Interoperability Protocol (CCIP) for the safe transfer of cross-chain data and value to support its upcoming HKDA stablecoin issuance, which is backed 1:1 by the Hong Kong dollar, and the Chainlink Proof of Reserve (PoR) for verifying asset collateralization.
Hong Kong-based stablecoin issuer @IDAfi24 is integrating #Chainlink Proof of Reserve to provide enhanced visibility into the reserves backing the HKDA stablecoin.
IDA also plans to integrate CCIP to enable secure cross-chain transfers.https://t.co/BiPONeSdWU pic.twitter.com/PEqjzVMnMf— Chainlink (@chainlink) October 9, 2024
IDA plans to integrate Chainlink CCIP
According to a press release by Chainlink, by using Chainlink's secure and reliable onchain PoR data, the integration provides HKDA users with improved visibility into the reserves supporting the stablecoin.
In order to securely mobilize HKDA across multiple blockchains and ultimately increase the token's utility and accessibility, IDA also plans to integrate Chainlink CCIP.
Sean Lee, co-founder and CSO of IDA, said, "Chainlink is the industry standard for verifying the collateralization of digital assets onchain and transferring them cross-chain, giving our ecosystem partners increased accessibility to HKDA by making it available across various chains as well as enhanced assurances regarding the stability and backing of HKDA."
IDA is partnering with leading banks, financial institutions, traditional and virtual asset exchanges, retail businesses, and real-world asset (RWA) issuers to utilize HKDA as a secure payment method and institutional trading tool in digital asset markets.
Tokenizing RWAs improves market efficiency and makes it simpler for companies to manage and exchange their assets while also streamlining transactions and minimizing expenses. Lee added, There is no doubt that this innovation will boost the economy and transform the financial landscape.
Chainlink to advance the use of HKDA as a payment method
Angie Walker, Global Head of Banking and Capital Markets at Chainlink Labs, stated: Our aim is to support the development of tokenized real-world assets in addition to advancing the use of HKDA as a payment method for international transactions. Quadrillions of dollars' worth of tokenized assets could be unlocked by tokenized money, including stablecoins, increasing market liquidity.
In addition to enabling transactions worth over $15 trillion, Chainlink, the industry-standard decentralized computing platform, offers a wide range of services essential for developing and safeguarding tokenized real-world assets (RWAs) and stablecoins that can expand onchain finance to billions of users worldwide.
IDA raises $6M to launch Stablecoin HKDA in Hong Kong
According to a statement on Monday, September 2, a $6 million seed funding round was successfully completed by Asia-based cryptocurrency company IDA to support the creation and introduction of its first stablecoin, HKDA, in Hong Kong.
Two well-known investors led the funding round: Hashed, a venture fund that supports early-stage blockchain projects, and CMCC Global, which made an undisclosed contribution through its Titan Fund. Additionally, Hack VC, Anagram, GSR, protagonist, and angel investors, including Raj Gokal, co-founder of Solana, participated in the round.
IDA will create its first stablecoin, HKDA, with this investment. It will be 1:1 pegged with the value of the Hong Kong dollar (HKD). The digital asset will be entirely backed by reserve assets that are kept in Hong Kong-based, approved, and regulated institutions.
IDA collaborates with leading blockchain networks
IDA also collaborated with blockchain protocols such as Solana, Polygon, and Aptos to improve HKDA's accessibility, interoperability, resilience, and liquidity, thereby strengthening its position in the global market for digital assets.
The HKDA minting, redemption, and broad adoption will be supported by these blockchains. These networks' support for the stablecoin will give Hong Kong cryptocurrency traders the freedom to access HKDA on any blockchain, enabling them to purchase, trade, and convert the digital asset into other cryptocurrencies.
HKDA Stablecoin to launch this year
To make sure the stablecoin conforms with regional laws, IDA is also collaborating closely with the Financial Services and the Treasury Bureau (FSTB) and the Hong Kong Monetary Authority (HKMA).
Although the precise time frame has not been revealed, HKDA is currently in its early phases of development and should soon be tested on testnets. The stablecoin is expected to launch later this year after the beta phase is over. Sean Lee, IDA's co-founder and chief strategy officer, said the crypto firm plans to launch its mainnet before the end of 2024 and achieve regulatory clarity earlier next year.
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