- Coinbase, one of the largest cryptocurrency exchanges based in the US, has officially integrated the Chainlink CCIP into its Project Diamond initiative.
- The Project Diamond platform can now provide secure data and cross-chain connectivity to effectively address institutional users’ compliance requirements.
Chainlink, a decentralized blockchain Oracle network, and Coinbase have jointly announced a significant enhancement to Coinbase’s Project Diamond, a compliant digital asset platform tailored for global institutions that are regulated by the Abu Dhabi Global Market (ADGM).
By adopting the Chainlink CCIP as an integral infrastructure, Project Diamond is set to streamline the full lifecycle management of tokenized assets, ensuring robust compliance and efficiency. Project Diamond utilizes a robust infrastructure comprising Coinbase Prime custody, the Prime Onchain Wallet, USDC, and the Base Ethereum layer-2 network of the exchange.
The Role of Chainlink CCIP in Enhancing Project Diamond
Coinbase’s Project Diamond will greatly benefit from the integration of Chainlink’s Cross-Chain Interoperability Protocol (CCIP), which facilitates seamless interaction across multiple blockchains. CCIP’s functionalities, including arbitrary messaging, token transfer, and programmable token transfer, enable a range of applications, such as cross-chain lending and optimized transaction computation, significantly enhancing liquidity and reducing operational costs.
Users can maximize yields by moving collateral to new DeFi protocols while also fostering the creation of innovative decentralized applications (dApps) that leverage the unique strengths of different chains.
Marcel Kasumovich, Deputy Chief Investment Officer at Coinbase Asset Management, emphasized the transformative potential of this collaboration, stating:
Chainlink is essential infrastructure that enables asset issuers, banks, and financial institutions to create tokenized asset solutions that are compliant, secured by verifiable data, and interoperable across any public or private blockchain.
He further noted that by natively integrating the Chainlink standard into Project Diamond, built on Coinbase’s tech stack on Base, they are facilitating the widespread institutional adoption of digital assets.
The partnership underscores the increasing demand for reliable, on-chain data in the cryptocurrency sector, such as market pricing, reference data, and essential compliance measures, including Anti-Money Laundering (AML) and Know-Your-Customer (KYC) protocols.
The collaboration also marks a notable expansion for Chainlink within the Middle East and North Africa (MENA) region. According to the press release, Chainlink Labs aims to leverage its local presence to forge strategic partnerships with financial institutions and market infrastructures, enhancing its global ecosystem as the demand for tokenized assets rises. Hamad Sayah Al Mazrouei, CEO of the ADGM Registration Authority, acknowledged the growing interest in blockchain technology within the region, expressing that Abu Dhabi is an ideal environment for fostering innovative solutions like the Chainlink Standard.
In recent years, Chainlink has facilitated over $17 trillion in value within the blockchain ecosystem. The platform has established significant partnerships with major institutions like Swift and ANZ Bank. Additionally, Chainlink plays a crucial role in decentralized finance (DeFi), with protocols such as Aave and Lido relying on its technology for cross-chain transfers. Currently, Chainlink (LINK) is priced at $22.59, representing a 2.78% drop in the last 24 hours and an 8.99% decline over the past week.