Chainlink’s Protocol Secures Backed Real-World Assets

Chainlink’s Proof of Reserve system fortifies Backed’s platform by adding a layer of transparency and security to tokenized real-world assets.

CHAINLINK and SWIFT intergrated together.
Created by Kornelija Poderskytė from DailyCoin
  • Backed integrates Chainlink’s Proof of Reserve to secure its tokenized real-world assets.
  • Real-time data verification adds transparency and compliance to Backed’s platform.
  • The move could change how investors view and interact with tokenized assets.

The intersection of blockchain technology and traditional finance through asset tokenization continues to be a rich area of innovation. In this evolving landscape, Backed, a real-world asset tokenization platform, has integrated Chainlink’s Proof of Reserve, boosting the transparency of its smart contract. 

On October 26, 2023, Backed, a Swiss-based company specializing in tokenizing real-world assets, announced their integration of Chainlink’s Proof of Reserve (PoR). This development will allow users to verify the adequacy of collateral reserves in real-time independently.

This technology uses Chainlink’s decentralized oracle network to validate that the real-world assets backing Backed’s tokens (bTokens) are fully collateralized. Specifically, The Network Firm, an auditing API operator, provides these crucial data, updated every 10 minutes, offering a high degree of real-time assurance.

Using Chainlink’s technology, Backed ensures a transparent and secure verification of the assets that back its bTokens, including real-world assets like stocks or ETFs. This integration means that investors can, at any time, verify that their holdings are backed 1:1 by these assets. 

The reserve data is updated daily, or if there’s a 10% change in the volume of reserves, making this information dynamically available on Backed’s website and on-chain for public viewing.

Most asset tokenization platforms rely on periodic auditing, which may leave investors in the dark between audit periods. Chainlink’s real-time updates remove this uncertainty in hopes of instilling a greater sense of confidence in the investors.

Backed is a platform specializing in tokenizing real-world assets and converting them into blockchain-based tokens. These tokens, known as bTokens, represent a digital share of the physical asset, such as real estate. This technology potentially brings liquidity to asset holders and enables easier transfer and management of their assets.

Most recently, Backed has also announced plans to expand its range of tokenized products, including tokenized art and intellectual property. Chainlink’s real-time reserve verification technology will also play a role in securing these assets. 

On the Flipside

  • Chainlink has recently completed several integrations with major crypto and fintech players. In September, Chainlink partnered with Coinbase’s Base to provide infrastructure for easy cross-chain transactions
  • Also in September, Chainlink partnered with payment network Swift to work on blockchain interoperability

Why This Matters 

Integrating Chainlink’s Proof of Reserve into Backed’s platform could make tokenized assets more secure, transparent, and compliant. If successful, this will boost the use cases for blockchain technology. 

Read more about Chainlink’s partnership with Swift: 
Chainlink and Swift: Pioneering Global Tokenized Asset Transfers

Read more about crypto cold wallets and why they are important: 
Just 10% of Crypto Users Hold Cold Wallets: Mark Venables

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
David Marsanic

David Marsanic is a journalist for DailyCoin who covers the intersection of crypto, traditional finance, and government. He focuses on institutionalized crypto entities like major cryptocurrency exchanges and Solana, breaking down complex topics into easy-to-understand writing. David's prior experience as a business journalist at various crypto and traditional news sites has enabled him to maintain a critical approach to news while adhering to high journalistic integrity standards.