Coinbase has now incorporated Chainlink’s DataLink service to introduce institutional trading data onto the blockchain for the first time.

This integration introduces order book information, current spot prices, perpetual futures data, as well as datasets from Coinbase International Exchange and e-mini futures through Coinbase Derivatives Exchange into a blockchain environment.

DataLink serves as an institutional-standard data publication service based on the Chainlink data protocol. It facilitates protocols’ direct access to verifiable off-chain data feeds within blockchain settings, simplifying the integration of market data without necessitating management of underlying infrastructure complexities like delivery, decentralisation, security, and reliability.

Boosting DeFi infrastructure for institutions

With this onchain availability of Coinbase data, a variety of onchain financial instruments can now be supported, including derivatives, tokenised real-world assets (RWAs), structured products, perpetual contracts, synthetic assets, and lending protocols. Historically, access to high-quality pricing and risk benchmarks has been a barrier to scaling DeFi applications for institutional involvement.

Chainlink operates as an oracle network that connects smart contracts with external data sources. Its infrastructure is extensively used across blockchain networks and DeFi projects to feed off-chain information into onchain applications, acting as the standard mechanism for this process.

The latest DataLink integration builds upon prior collaborations between Coinbase and Chainlink. This includes the deployment of a Base-Solana bridge secured by Chainlink’s Cross-Chain Interoperability Protocol (CCIP), with Chainlink being chosen as the exclusive interoperability provider for all Coinbase Wrapped Assets. The new step extends this partnership into market data provision.

A spokesperson from Coinbase highlighted that this DataLink integration leverages existing Chainlink infrastructure deployments and chose the Chainlink data standard due to its suitability for bringing trading data onto onchain markets. A representative from Chainlink Labs considered it part of a broader initiative aimed at establishing programmable market infrastructure, facilitating the convergence of institutional finance and DeFi.

This move aligns with an industry trend where centralized exchanges and institutional data suppliers are progressively expanding their offerings into blockchain environments to cater to growing tokenization activities and increasing institutional engagement in decentralized finance (DeFi).