Chainlink Chosen as Technology Partner by HKDR Hong Kong Dollar Stablecoin

On May 7, the crypto-oracle solutions provider announced that RD Technologies was integrating Chainlink CCIP and Proof of Reserve to power its Hong Kong dollar stablecoin.

Chainlink’s cross-chain interoperability protocol will be integrated to enable safe and reliable HKDR cross-chain transfers and easier access to the new stablecoin.

In addition, the company is also adopting Chainlink’s Proof of Reserve (PoR) to help provide reliable on-chain verification of HKDR’s reserve support, according to the announcement.

Chainlink delving into RWA

The collaboration aims to enable more businesses and merchants to settle payments in HKDR, enjoy faster and cheaper cross-border payments, and enable reliable transfer of tokenized real-world assets (RWAs) using the stablecoin.

The Hong Kong-based fintech company said it had made agreements with “several world-renowned cross-border payment, virtual asset and wealth management players” to use the HKDR for cross-border payments.

.@RD_Technologies is being integrated #Chainlink CCIP and Proof of Reserve to power HKDR, a stablecoin backed 1:1 by the Hong Kong dollar.

Find out how this strategic collaboration unlocks secure cross-chain and HKDR cross-border payments ⬇️

— Chainlink (@chainlink) May 7, 2024

RD Technologies CEO Rita Liu said “the integration will help facilitate the adoption of HKDR in cross-border payments, real-world asset tokenization and other on-chain financial applications.” It will also help facilitate Hong Kong’s development as a global hub for Web 3 and virtual assets, he added.

Colin Cunningham, Head of RWA and Alliances at Chainlink Labs, added:

“The settlement of transactions across chains with HKDR will accelerate the adoption of tokenized assets and enable faster and more cost-effective cross-border payments.”

Chainlink CCIP allows smart contracts to securely access data from external systems to facilitate trustless data connectivity between blockchains.

In April, Chainlink released a new cross-chain bridge application powered by CCIP called “Transporter” to improve the security of token transfer.

May 6, Chainlink adoption update revealed that there were seven integrations of four Chainlink services on three different chains: Arbitrum, BNB Chain and Polygon.

LINK Prices Outlook

However, the network’s native token, LINK, did not react to the news. The asset had fallen 2% on the day to a low of $14.28 at the time of writing amid a broader retreat in the altcoin market.

LINK prices have been weak recently, losing nearly 30% over the past month as crypto markets corrected from mid-March highs.

LINK remains down 73% from its May 2021 all-time high of $52.70 and has not gained much strength in 2024 despite Bitcoin hitting a new all-time high.

However, analysts have predicted that the other season is around the corner when this asset usually performs well.

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