Fireblocks, a digital asset management platform, and blockchain developer Chainlink Labs have announced a strategic partnership to build and offer banks and financial institutions a secure and compliant technology solution for issuing and transacting stablecoins globally.
According to a press release from both companies, this new solution provides on-chain collateral verification for enhanced transparency and real-time price tracking.
This integrated platform offers issuing agents a real-time view of stablecoins, including reserves, market value, and total supply across multiple blockchains. It also features customizable compliance tools for KYC/AML and Travel Rule regulations, Direct Custody Wallets-as-a-Service for over 80 blockchains, cross-chain data transfer, and access to a network of over 2,000 institutional counterparties.
Both companies claimed that they aim to establish new industry standards by providing greater transparency and efficiency in stablecoin operations.
The stablecoin market have seen significant growth in recent times, with a recent survey indicating that they settled $3.7 trillion in 2023 and are projected to reach $5.28 trillion in 2024. The data, compiled by Castle Island Ventures and Brevan Howard Digital, highlights stablecoins’ evolution from trading collateral to versatile digital dollar instruments, expanding their use beyond exchange settlements.
Stephen Richardson of Fireblocks emphasized the need for a comprehensive solution that addresses stablecoin issuance, distribution, custody, and compliance, meeting the increasing demand for regulated usage.
Angie Walker from Chainlink Labs noted that the partnership seeks to drive market growth by offering real-time visibility into stablecoin reserves, enhancing their utility as secure payment and trading instruments.
This collaboration also aligns with Chainlink’s recent initiatives, including a partnership with Fidelity International and Sygnum to bring net asset value (NAV) data on-chain. Announced on July 3, 2024, the initiative aims to provide real-time NAV data for tokenized assets, improving accessibility compared to traditional methods that update data only at the end of each trading day.
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