HashKey Chain and Chainlink Join Forces: Building a Bridge Between Blockchain and TradFi

Recently, a certain Layer 2 public chain announced a strategic partnership with a well-known decentralized oracle network, choosing its cross-chain communication protocol as the standard infrastructure and designating its data streaming service as the official data solution. This marks a significant technological upgrade for the Layer 2 public chain and is also a key step in its venture into institutional-level DeFi. This collaboration highlights the public chain's commitment to building a secure and compliant Blockchain ecosystem, further strengthening its connection with the TradFi system.

As a representative Layer 2 solution under the Asian compliance framework, this public chain has gained certain advantages in the regulatory environments of financial centers such as Hong Kong and Singapore, and is committed to providing strong support for institutional investors, physical assets, and compliant DeFi applications. Its partner, as a global leading decentralized oracle network, has solidified its industry standard position in the TradFi sector with practical experience in $19 trillion on-chain transactions. The core products of this oracle network are not only widely used in the DeFi ecosystem but have also established deep collaborations with several top global financial institutions, further expanding its influence in the TradFi domain.

Through this cooperation, the Layer 2 public chain not only gained strong technical support but is also positioned to take a leading role in future Blockchain infrastructure development. This collaboration has built a bridge between TradFi and Web3, allowing it to meet both compliance requirements and the demands for technological innovation, facilitating a seamless integration of the two.

Strategic Considerations

Technical Security and Stability

In the blockchain ecosystem, cross-chain interoperability and data reliability have always been two major challenges in technological development. This Layer 2 public chain chose this oracle network precisely because of its advantages in security and reliability. As the blockchain ecosystem continues to expand, the demand for cross-chain communication and data verification has become increasingly urgent. This oracle network has successfully provided cross-chain interoperability solutions for multiple public chains, protecting over $75 billion in total value locked in DeFi, and facilitating $19 trillion in on-chain transactions. This practical experience has positioned it at the forefront of Web3 infrastructure.

For this Layer 2 public chain, the security of cross-chain asset transfers, token transmission, and data exchange is a fundamental requirement for building institutional-level financial applications. The cross-chain communication protocol provided by its partners features a decentralized verification mechanism that effectively avoids common cross-chain security issues such as double-spending attacks and cross-chain reentrancy attacks, ensuring reliability and security in a high-value, low-risk-tolerant financial environment. In this way, the Layer 2 public chain can provide institutional clients with guaranteed cross-chain services, reduce potential technical risks, and enhance its market competitiveness as a compliance-friendly platform.

In addition, the data flow service of the oracle network provides low-latency, real-time, tamper-proof market data for the Layer 2 blockchain, which is particularly important in fields such as high-frequency trading and derivatives trading. The demand for real-time, transparent trading data in financial markets is particularly urgent, especially in the context of increasing compliance requirements. Through this cooperation, the Layer 2 blockchain can ensure that the data on its platform is verifiable, transparent, and compliant, providing institutional investors with secure and reliable market information, thereby further solidifying its leadership position in the compliant DeFi and institutional finance sectors.

The connection between TradFi and Web3

As blockchain technology gradually integrates into the TradFi system, the boundaries between Web2 and Web3 are being broken. This Layer 2 public chain is seeking more efficient connection methods in this wave of transformation, while its partner, as an industry-leading decentralized oracle network, has made groundbreaking progress in this field. Compared to many infrastructures that focus solely on the DeFi sector, this oracle network not only dominates the on-chain finance space but has also established solid industry standards in the traditional financial market, becoming a key bridge connecting the two worlds.

Currently, this oracle network has engaged in in-depth cooperation with several top global financial institutions to promote the implementation of asset tokenization, cross-border payments, and financial data on-chain applications. For example, a certain international payment network successfully interconnected over 11,500 banks with the blockchain network through its cross-chain communication protocol, addressing the compatibility issues between traditional payment systems and on-chain assets, allowing for a more seamless flow of fiat and digital assets. Additionally, in collaboration with several financial giants, this oracle network has put core financial data such as fund net values, asset settlements, and cross-border payments on-chain, significantly enhancing data transparency and market liquidity. These collaborations not only showcase its technical capabilities in the interconnectivity between Web2 and Web3 but also demonstrate its wide recognition in the global financial market.

For this Layer 2 public chain, leveraging this bridge-like infrastructure allows its asset management and payment clearing systems to seamlessly connect with the global financial system, achieving instant interaction with over 11,500 financial institutions. This level of connectivity means that the public chain can not only simplify cross-border transaction processes and reduce clearing friction but also further enhance its compliance framework and institutional credibility, laying the groundwork for the entry of large-scale institutional funds.

Moreover, this collaboration is not only a technical upgrade for the Layer 2 public blockchain but also a leap in its market positioning. Through this partnership, the public blockchain can rapidly increase its recognition in the global financial industry, building a strong competitive advantage in areas such as physical assets, DeFi, institutional-level asset management, and cross-chain finance, truly realizing the vision of Web3 empowering TradFi.

Ecosystem Expansion and Developer Support

This technical collaboration has greatly lowered the threshold for Web3 developers to enter the cross-chain ecosystem and has provided a more complete infrastructure for the Layer 2 public chain ecosystem. Through cross-chain communication protocols and data flow services, this public chain can enhance cross-chain asset circulation and real-time data transmission capabilities, and has built a complete set of efficient, seamless development tools and APIs, enabling developers to easily integrate advanced Web3 applications, reducing construction costs and technical barriers.

This technological upgrade demonstrates tremendous value, especially in the tokenization of physical assets and the automation of smart contracts. Developers can build more complex DeFi applications and financial products based on high-trust data streams and decentralized cross-chain operations, for example:

• Cross-chain fund management: Utilizing cross-chain communication protocols to seamlessly transfer tokenized fund assets between different public chains, achieving portfolio management across different blockchains;

• Automated hedging trading: Through real-time market data, smart contracts can execute low-latency, high-precision automated hedging strategies, reducing market volatility risks.

• Compliant DeFi solutions: Combined with identity verification oracles, this Layer 2 blockchain can provide institutional investors with compliance-friendly lending, yield management, and settlement tools.

This technological synergy not only enhances the attractiveness of the Layer 2 public chain within the developer ecosystem but also provides richer support for innovative applications in the Web3 domain, promoting the development of emerging sectors such as institutional DeFi and cross-chain finance. As developers continue to flock in, its ecosystem will further expand, driving the large-scale implementation of Web3 applications and accelerating its penetration in the global Blockchain market.

Profound Impact on Both Parties

This Layer 2 blockchain: a dual leap in technology and ecology

This collaboration represents a key step in the technological upgrade for this Layer 2 blockchain, as well as a leap in ecosystem and market competitiveness. On the technical level, leveraging cross-chain communication protocols and data flow services, this blockchain can achieve significant improvements in cross-chain interoperability, data transmission, and institutional-level financial services. The cross-chain communication protocol endows it with secure and scalable cross-chain capabilities, making asset flows and smart contract interactions more efficient, while the low-latency, tamper-proof data provided by data flow services significantly enhances its application capabilities in high-frequency trading, lending, and physical asset management. This not only reduces the risk of developers within its ecosystem relying on off-chain data but also provides a more solid foundation for its DeFi, derivatives market, and stablecoin applications.

On the market level, its partners, as top global Web3 oracle service providers, bring greater credibility to the Layer 2 blockchain with their brand influence and extensive institutional cooperation network. Compared to other Layer 2 solutions, this blockchain already has compliance advantages, and this cooperation further strengthens its competitiveness in the Asian market, making it more attractive to institutional investors and high-end developers. Particularly in the areas of physical assets, institutional DeFi, and on-chain financial services, this technical collaboration makes it easier for the blockchain to gain recognition from banks, asset management companies, and cross-border payment enterprises, thereby driving larger-scale capital inflows and expanding the potential user base.

In terms of ecological development, this Layer 2 public chain has built a more attractive development environment through this technical support, allowing more projects in DeFi, payment finance, NFTs, and other sectors to easily deploy on its chain. The powerful cross-chain capabilities and real-time data services provide developers with a more flexible technical framework, reducing migration and integration costs, making this public chain one of the preferred infrastructures for developers. With the increase in ecological richness, the total locked value and user activity are expected to grow significantly, and this public chain will also occupy a more important market share in the Layer 2 sector.

Oracle Network: Accelerating Strategic Layout in the Asian Market

By collaborating with the Layer 2 public chain, this oracle network is accelerating its strategic layout in the Asian market, especially in regulatory-friendly financial centers such as Hong Kong and Singapore. While helping to deepen its influence in the compliant Web3 ecosystem, this also lays the foundation for further penetration into institutional-level DeFi and physical asset sectors.

Against the backdrop of traditional financial institutions gradually embracing Blockchain, this oracle network has become the preferred decentralized oracle solution for banks, asset management companies, payment clearing networks, and other institutions. For example, its collaborations with multiple global financial giants have demonstrated the wide applicability of its cross-chain communication protocol in areas such as cross-border payments, asset tokenization, and fund management. Through this cooperation, the oracle network has further entered the Asian compliant Blockchain ecosystem, allowing for deep integration with licensed financial institutions and expanding landing scenarios in applications such as compliant stablecoins, cross-border payments, and DeFi lending.

In addition, this Layer 2 public chain's strategy of driving ecosystem growth through compliance aligns closely with the positioning of this oracle network in the institutional market. As a global leader in cross-chain interoperability and data solutions, its technology has already matured in the DeFi space, but its deep application in the compliant financial system is still in the early stages. With the compliance advantages of this public chain in regions like Hong Kong and Singapore, this oracle network can more smoothly enter the Asian TradFi system and attract more regulatory-friendly Web3 projects to adopt its solutions. This not only solidifies its leading position in the global Web3 infrastructure but also opens up new market growth opportunities, allowing it to gain a favorable position in the wave of institutional DeFi development in Asia.

Industry Significance: The Trend of Integration Between Blockchain and TradFi

This collaboration is not only a business breakthrough in the integration of Blockchain technology and TradFi, but also an important signal of the global financial system entering the era of decentralized financial institutionalization and compliance. Against the backdrop of gradually clearer global regulations, the acceptance of Blockchain in the traditional financial market is increasing, but it still faces key challenges such as compliance, security, transparency, and efficiency. This partnership showcases a brand new solution—enhancing the operational efficiency of the financial system through decentralized technology, eliminating intermediaries, improving liquidity, while ensuring compliance with regulatory requirements, providing a feasible path for the seamless integration of Web3 and traditional finance.

From a macro market perspective, this cooperation reflects the acceleration of the global financial digital transformation. Since 2024, with the large-scale promotion of the tokenization of physical assets, major financial institutions around the world have been actively laying out.