Coinbase’s Project Diamond Embraces Chainlink Standard for Institutional Adoption of Digital Assets
Coinbase’s Project Diamond has recently announced its adoption of the Chainlink Standard in an effort to drive institutional adoption of digital assets. This strategic move, shared with CryptoSlate on Dec. 10, aims to cater to institutional users outside the US through a range of services provided by Coinbase Asset Management.
Project Diamond is a specialized initiative that utilizes a robust infrastructure consisting of Coinbase Prime custody, the Prime Onchain Wallet, the Project Diamond platform, USDC, and the exchange’s Ethereum layer-2 network, Base. It is overseen 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’s framework will enable the platform to offer tokenized asset services, providing asset issuers and fund managers with a secure and compliant solution for scaling operations. Peregrine PSG Digital, a regulated ADGM entity, has been selected as the flagship user of this new feature.
This collaboration with Chainlink addresses the growing demand for reliable data in the crypto sector, covering aspects such as market prices, proof of reserves, and AML/KYC data. It also facilitates cross-chain interoperability and seamless integration with traditional financial systems, thereby enhancing secondary market access and liquidity for users.
By leveraging Chainlink’s Cross-Chain Interoperability Protocol (CCIP) and Chainlink Functions, Project Diamond can ensure smooth cross-chain operations for new assets and enrich tokenized assets with verifiable data across multiple blockchains. Johann Eid, chief business officer at Chainlink Labs, emphasized the importance of end-to-end lifecycle management for tokenized assets, stating that this collaboration empowers asset issuers and financial institutions to effectively utilize secure and interconnected blockchain solutions.
Moreover, this partnership signifies Chainlink Labs’ growing presence in the MENA region, as the company recently established an office in Abu Dhabi under the Registration Authority of ADGM. This local expansion aims to strengthen 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 increasing demand for blockchain-based financial solutions in the region and highlighted Abu Dhabi’s supportive environment for innovative technologies like the Chainlink Standard.
In conclusion, the integration of the Chainlink Standard into Project Diamond’s infrastructure marks a significant step towards enhancing institutional adoption of digital assets and fostering blockchain innovation in the MENA region and beyond.