Coinbase and Chainlink Partner for Tokenized Asset Solutions

TLDR

• Coinbase’s Project Diamond integrates Chainlink’s CCIP to enhance cross-chain functionality for tokenized assets
• Project Diamond operates under Abu Dhabi Global Market (ADGM) regulations, targeting institutional investors
• Chainlink Labs establishes Abu Dhabi office to strengthen MENA presence
• Integration enables secure cross-chain operations and real-world data verification
• LINK token price up 60% in past month amid institutional partnerships

Coinbase has announced the integration of Chainlink’s Cross-Chain Interoperability Protocol (CCIP) into its Project Diamond platform, marking a major development in institutional digital asset management. The partnership, revealed on December 10, 2024, aims to improve the handling of tokenized assets across different blockchain networks.

Project Diamond, operating under the regulatory oversight of the Abu Dhabi Global Market (ADGM), serves institutional investors and asset managers outside the United States. The platform combines several Coinbase technologies, including Coinbase Prime custody, Prime Onchain Wallet, and the company’s Ethereum layer-2 network, Base.

The integration allows Project Diamond to support expanded tokenized asset services, providing asset issuers and fund managers with tools for scaling their operations. Peregrine PSG Digital, a regulated ADGM entity, has been selected as the first major user of these new capabilities.

Chainlink’s CCIP technology enables the transfer and communication of assets across multiple blockchain networks. This feature addresses a key challenge in the digital asset space by allowing tokens to move between public and private blockchains while maintaining security and compliance.

Marcel Kasumovich, Deputy Chief Investment Officer at Coinbase Asset Management, emphasized the importance of this development.

“By integrating the Chainlink standard natively into the Project Diamond platform, powered by Coinbase’s tech stack on Base, we’re paving the way for widespread institutional adoption of digital assets,” he stated.

The partnership responds to growing demand for reliable on-chain data, including market prices, reference data, and compliance information. Through Chainlink Functions, Project Diamond can now incorporate real-world, verifiable data across multiple blockchains.

Johann Eid, Chief Business Officer at Chainlink Labs, highlighted the crucial role of managing tokenized assets throughout their lifecycle. The collaboration enables asset issuers and financial institutions to use secure blockchain solutions more effectively.

As part of this expansion, Chainlink Labs has established an office in Abu Dhabi under the Registration Authority of ADGM. This move strengthens the company’s presence in the Middle East and North Africa (MENA) region, where demand for blockchain-based financial solutions continues to grow.

The ADGM Registration Authority CEO, Hamad Sayah Al Mazrouei, noted Abu Dhabi’s supportive environment for innovative technologies like the Chainlink Standard. The region has become increasingly important for blockchain development and digital asset management.

Project Diamond operates under the trade name Onchain Marketplace and is regulated by the Financial Services Regulatory Authority of ADGM. This regulatory framework provides institutional users with confidence in the platform’s compliance and security measures.

The collaboration has coincided with positive market performance for Chainlink’s native token, LINK, which traded at $22.35, showing an increase of over 60% in the past month. This price movement reflects growing investor confidence in Chainlink’s institutional partnerships.

The integration includes features for anti-money laundering (AML) and know-your-customer (KYC) compliance, essential components for institutional adoption of digital assets. These tools help ensure that transactions meet regulatory requirements across different jurisdictions.

Coinbase’s comprehensive infrastructure supports the initiative, incorporating various elements of its technology stack to create a seamless experience for institutional users. This includes integration with the Base network for enhanced scalability.

The partnership demonstrates the growing maturity of blockchain infrastructure for institutional use, particularly in regions actively developing regulatory frameworks for digital assets. The ADGM’s support for such initiatives highlights Abu Dhabi’s emerging role in the global digital asset ecosystem.

The most recent development in this partnership is the selection of Peregrine PSG Digital as the flagship user, marking the beginning of practical implementation for Project Diamond’s enhanced capabilities.