Coinbase and chainlink have just concluded a strategic alliance for the deployment of the Coinbase diamond project.

Coinbase, through its asset management branch, is launching the integration of traditional financial assets on blockchain with a new platform, «Project Diamond». This project will be deployed via Base (layer 2), the Coinbase network. The base is built on the OP Stack, a development framework designed in collaboration with Optimism. The Diamond project is developed by Coinbase Asset Management (the company’s development and innovation arm).

The project’s objective is to democratize access to financial products by tokenizing them. The project has been approved by the Regulated Financial Services Authority (FSRA) of Abu Dhabi (United Arab Emirates). The country seems ready to embark on the adventure since they have already issued a short-term bond in USDC. This is typically the kind of financial products that could be introduced gradually with the Diamond project.

Chainlink’s participation will involve the integration of its Cross-Chain Interoperability Protocol (CCIP) network into this project. As a reminder, this is an inter-blockchain communication protocol. It allows to transfer data and tokens between various blockchains. Through this collaboration, institutions will not only be able to create and manage tokenized assets on different blockchains, but also ensure perfect regulatory compliance. The different products will be much more liquid and this will facilitate decentralized investment for both individuals and institutions.

However, this project will not be available in the US for the time being. The project will need to be monitored as it could have significant impacts on the future of the ecosystem. The success of the project could also have a positive impact on the Optimism and Chainlink tokens. The news about the Chainlink project is very impressive. Its collaborations with the central bank of brazil (commercial automation), the payment network SWIFT (tokenization via the JRE network) let presage good days for the Token.