TechFlow reports that tokenization protocol Backed has announced integration with Chainlink's Proof of Reserve (PoR), enabling users to transparently verify the collateralization status of tokenized assets.
PoR allows users to independently verify that sufficient reserves are maintained on-chain at all times, ensuring the integrity of tokenized assets.
Specifically, when users purchase bTokens, Backed automatically acquires the underlying assets required as collateral, and the verification process is confirmed via Chainlink PoR's decentralized oracle network. This data is updated daily or whenever reserve levels change by more than 10%.
Chainlink PoR also enables autonomous real-time validation of collateralization, helping protect user funds from unexpected fractional reserve practices or fraudulent activities.
