Chronicle, a decentralized oracle network, has integrated its real-world asset (RWA) oracle with M^0, an Ethereum-based stablecoin minting protocol. This partnership aims to enhance the security and transparency of M^0’s collateral verification processes.
Oracles play a crucial role in connecting blockchains to the real world, allowing smart contracts to execute based on external data. In the case of M^0, the oracle verifies the collateral balances used by minters to generate the fungible cryptodollar $M.
M^0, a decentralized, interoperable, and fungible cryptodollar, is overcollateralized using U.S. Treasuries. Minters lock collateral in an off-chain storage facility to generate M tokens, subject to protocol governance approval.
“The M^0 team anticipates that the system will scale to several billions of dollars over the coming years, of which Chronicle will be a key component to the overall transparency of the protocol,” Chronicle founder Niklas Kunkel said. “We believe real-world assets represent the next frontier in Web3 innovation and we’re thrilled to continue leading on this as one of the first RWA oracles working in collaboration with other industry players to reshape the global financial order and bring about true DeFi.”
“This partnership enhances the security and transparency of our collateral verification processes, ensuring the integrity and reliability of our $M cryptodollar,” M^0 co-founder and chief architect Greg Di Prisco added. “This integration reflects M^0’s commitment to delivering absolute transparency to $M holders.”
Chronicle’s RWA oracle partnership with M^0 is the latest in its series of industry collaborations. It was previously selected as the launch partner for Circle’s EURC stablecoin deployment and was chosen by Reserve and Re7 to secure a new market on Morpho on Layer-2 Base.
M^0 previously raised $35 million in Series A funding led by Bain Capital Crypto with participation from Galaxy Ventures, GSR, and others. This partnership further strengthens M^0’s position as a leading player in the decentralized finance (DeFi) space.
