Bancolombia and Chainlink Collaborate to Secure Stablecoin Operations

• Wenia, part of Bancolombia Group, integrates Chainlink Proof of Reserve to verify Colombian Peso-backed stablecoins.
• The integration ensures each COPW stablecoin is supported by actual currency reserves, enhancing transaction security.

Wenia, a digital asset company under Colombia’s Bancolombia Group, has partnered with Chainlink to integrate the Proof of Reserve (PoR) mechanism into its COPW stablecoin.

Proof of Reserves creates both transparency and security. It publicly shows the reserves backing a stablecoin, while also being used to make sure that no additional coins are minted unless the reserves in the off-chain world/bank account match the newly minted coins. This create… https://t.co/EUVLYAXOvK

— Sergey Nazarov (@SergeyNazarov) July 25, 2024

This collaboration aims to provide transparent verification of the Colombian Peso reserves that back the stablecoin.

The integration of Chainlink’s Proof of Reserve into Wenia’s operations allows real-time verification that each issued COPW is backed by a corresponding amount of Colombian Pesos. To prevent the issuance of more coins than there are reserves—a scenario known as infinite mint attacks—Wenia has also arranged for third-party audits by the firm Harris and Trotter.

Pablo Arboleda, CEO of Wenia, stated:

“Integrating Chainlink’s Proof of Reserve is a critical step for advancing the digital asset landscape in Colombia. It strengthens the trust in our financial systems by ensuring each digital token is backed by real currency.”

As we detail in Crypto News Flash, in 2023, the crypto market in Colombia grew significantly, with stablecoins accounting for 31% of all cryptocurrency transactions. With monthly crypto transactions estimated at around 200 million USD, Colombia is a big rank in cryptocurrency adoption in Latin America, according to Chainalysis.

Angela Walker, Global Head of Banking and Capital Markets at Chainlink Labs, said:

“Our technology aims to enhance the safety and reliability of digital currency transactions by providing end-to-end transparency for Wenia’s stablecoin reserves.”

The collaboration is also set to expand, potentially including Chainlink Price Feeds for accurate market data and the Cross-Chain Interoperability Protocol (CCIP) for secure blockchain interactions. This partnership not only enhances the operational integrity of Wenia’s digital assets but also supports the broader adoption and utility of cryptocurrencies in the region.