Chainlink and fireblocks partnership will manage the issuance, distribution and custody of tokenized assets, including stablecoins.
Both Chainlink Labs and Fireblocks, a blockchain startup have recently revealed their intention to combine their operations, which has sparked conversations throughout the web3 industry.
The companies stated that the purpose of this collaboration is to assist financial institutions and banks in the transactions and issuance of stablecoins in a seamless manner. In the meantime, a breakthrough technological solution that enables tokenization continues to serve as the foundation of this collaboration.
Chainlink Labs & Fireblocks Streamlining Stablecoin Issuance
Chainlink and Fireblock have entered into a strategic relationship, as stated in a press release dated September 17, with the intention of assisting financial institutions and banks in the process of creating and transacting stablecoins across the global financial market.
Through this collaboration, the companies aim to enhance the end-to-end tokenization capabilities for stablecoin issuers, primarily through the aid of a new technological solution.
Issuers have access to a wide range of support options, from issuance aids to interoperability facilities. To provide some background, the cooperation will be responsible for monitoring the issuance of tokenized assets, which will be assisted by a tokenization engine.
We guarantee the secure minting, custody-based distribution, and management of these assets, including stablecoins. In addition, “one can verify stablecoin collateral on-chain with proof of reserves for enhanced transparency and to help guarantee the value of stablecoins in circulation,” as stated in the previous sentence.
According to the news release, individuals are also able to transfer data and value across public or private blockchains by utilizing the solution’s cutting-edge cross-chain infrastructure.
At the same time, Angie Walker, who is the Global Head of Banking and Capital Markets at Chainlink Labs, made the following statement: “We anticipate that this will not only provide users of stablecoins with real-time visibility into asset reserves, but it will 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, who is the Managing Director of Financial Markets at Fireblocks, made the following statement: “As regulatory frameworks surrounding tokenized money continue to evolve, the potential for regulated stablecoin usage at the institutional level is expanding.”
The company anticipates that it will be able to fulfill the essential market requirements for promoting widespread acceptance of stablecoins if it collaborates with the company that is responsible for Link.
All things considered, the united effort has attracted significant attention all over the world, with the goal of promoting cryptocurrency usage within the TradFi environment. The native token of Chainlink, on the other hand, has experienced a decline of 8% this week, following a surge of 20% in the previous week.
LINK Price Performance Today
LINK’s price is currently trading at $10.59, with an intraday low of $10.43 and an intraday peak of $10.82. In addition, the 24-hour trading volume of the coin recently increased by about 8%, reaching a total of $180.42 million.
As the cryptocurrency industry prepares for turbulence with the Federal Open Market Committee (FOMC), it is intriguing to note that today’s fading movement mostly fits with the larger market trend.
At the same time, data from Coinglass today showed that the futures open interest for the coin had decreased by 1%, reaching $141.6 million. Furthermore, an 11% decrease in the derivatives volume heightened investor concerns about the asset, even after the previous announcement.
