Chainlink Labs and blockchain company Fireblocks have recently announced plans to merge forces, sparking discussions across the web3 industry. The firms revealed that this collaboration is an effort to aid banks and institutions in seamlessly transacting and issuing stablecoins. Meanwhile, the backbone of this collaboration remains a new technology solution enabling tokenization.

Chainlink Labs & Fireblocks Streamlining Stablecoin Issuance

According to a press release dated September 17, the strategic collaboration between Chainlink and Fireblock comes as an effort help banks and institutions in issuing and transacting stablecoins across the global financial market. Primarily, with the help of a new technology solution that comes with this collaboration, the companies plan to jack up end-to-end tokenization capabilities for stablecoin issuers.

The plethora of support for issuers ranges from issuance aids to interoperability facilities. For context, the collaboration will oversee the issuance of tokenized assets with the help of a tokenization engine. These assets are assured to be are securely mint, in line with custody, distributed, and manageable, including stablecoins.

Further, “one can verify stablecoin collateral on-chain with proof of reserves for enhanced transparency and to help guarantee the value of stablecoins in circulation.” Also, individuals can transfer data and value across public or private blockchains with the solution’s state-of-the-art cross-chain infrastructure, the press release added.

Simultaneously, Angie Walker, Global Head of Banking and Capital Markets at Chainlink Labs, stated, “We expect this will not only provide stablecoin users with real-time visibility into asset reserves but also elevate the utility of the stablecoin as a secure payment vehicle and institutional trading instrument in digital asset markets.”

On the other hand, Stephen Richardson, Managing Director of Financial Markets at Fireblocks, stated, “As regulatory frameworks around tokenized money continue to evolve, the potential for regulated stablecoin usage at the institutional level is expanding.” He added that by working with the firm behind LINK, the company expects to meet the vital market needs for fostering large-scale stablecoin adoption.

Altogether, the collaborative endeavor has garnered noteworthy attention globally, aiming to drive crypto adoption in the TradFi landscape.

LINK Price Performance Today

Meanwhile, Chainlink’s native token has slipped 8% this week after a 20% rally in previous week. LINK price currently trades at $10.59, with its intraday low and peak being $10.43 and $10.82, respectively. Besides, the coin’s 24-hour trading volume surged nearly 8% to $180.42 million today. Intriguingly, today’s waning movement primarily aligns with the broader market trend as the crypto realm braces for turbulency with the FOMC.

Simultaneously, Coinglass data today illustrated a 1% dip in the coin’s futures OI to $141.6 million. Moreover, the derivatives volume dipped 11%, adding to investor concerns about the asset despite the abovementioned announcement.

The post Chainlink, Fireblocks Join Forces to Help Banks & Institutions Issue Stablecoins appeared first on CoinGape.

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Filed under: News - @ September 17, 2024 7:21 am