Coinbase's Project Diamond adopts the Chainlink standard

As part of this initiative, Coinbase’s Project Diamond aims to natively utilise the Chainlink standard to deliver utility and unify liquidity for institutional asset issuers and fund managers. In addition, Peregrine, PSG Digital’s regulated business in the Abu Dhabi Global Market (ADGM), is set to be the flagship user. By adopting the Chainlink standard, Coinbase’s Project Diamond platform can provide data and cross-chain connectivity more securely, supporting in meeting the compliance needs of institutional integrators.

The announcement comes just days after Triple-A launched a dedicated crypto payment option customised for Coinbase users, optimising transactions within its global merchant network. The move focused on simplifying crypto payments for Coinbase customers, allowing transactions at select merchants within Triple-A’s global network. The partnership with Coinbase Commerce centred on enabling merchants to provide a Coinbase-specific payment method, scaling convenience for users and increasing adoption of cryptocurrency payments.

Coinbase’s collaboration with Chainlink

Chainlink’s Cross-Chain Interoperability Protocol (CCIP) is set to allow new assets on Coinbase’s Project Diamond platform, supporting interoperability with public or private blockchains. On the other hand, Chainlink Functions focuses on augmenting these assets through real-world data, regardless of the chain they move across through CCIP. Integrating Chainlink natively into the Project Diamon platform enables asset issuers and fund managers to benefit from a secure and compliant service to expand their tokenized assets across public and private blockchains via verifiable data connectivity. Additionally, the adoption of the Chainlink standard aims to improve the existing Coinbase Project Diamon implementation for ADGM RegLab.

Moreover, representatives from Chainlink Labs commented on the announcement, mentioning that Coinbase’s move highlights the importance of resolving the end-to-end lifecycle management of tokenized assets. Through this strategic integration, issuers, banks, and financial institutions can utilise Chainlink for verifiable data and secure cross-chain interoperability to work out tokenized asset demands and scale the institutional adoption of digital assets compliantly.