21Shares, a subsidiary of 21Shares AG, recently made headlines by announcing the integration of Chainlink Proof of Reserve on the Ethereum mainnet. This move aims to reinforce the transparency of the Ethereum reserves that back the 21Shares Core Ethereum ETF (CETH). By leveraging Chainlink’s decentralized computing platform, 21Shares intends to provide investors with a clearer view of the assets supporting the ETF.
One of the key reasons why 21Shares selected Chainlink as its partner for this initiative is the latter’s impressive track record in facilitating over $12 trillion in value for on-chain markets. The implementation of Chainlink’s Proof of Reserve (PoR) offers several advantages, such as automated on-chain verification and the elimination of central points of failure in transmitting external data to blockchains. These features enhance the reliability and transparency of CETH’s collateralization, instilling greater confidence in investors.
With the integration of Chainlink’s PoR, investors can now enjoy near real-time visibility into the asset collateralization of CETH. This means that they can independently verify the backing of the ETF, thus empowering them to make more informed investment decisions. The enhanced transparency provided by Chainlink not only benefits investors but also strengthens the overall integrity of the digital asset ecosystem.
Johann Eid, Chief Business Officer of Chainlink Labs, expressed enthusiasm about the collaboration with 21Shares and the milestone achieved through the integration of Chainlink PoR. Eid highlighted the role of 21Shares in promoting the adoption of digital assets and emphasized how the Chainlink platform facilitates seamless tokenization on a global scale. Ophelia Snyder, Co-Founder and President of 21Shares, also commended Chainlink PoR for enhancing the transparency of their spot Bitcoin ETP and deemed the decision to use Chainlink for the spot Ethereum ETP as a logical choice.
This recent update builds upon 21Shares’ earlier integration of Chainlink PoR for the ARK 21Shares Bitcoin ETF, underscoring the company’s commitment to transparency and investor trust. Launched in January 2024, the ARK 21Shares Bitcoin ETF has emerged as a leading spot Bitcoin ETP with substantial assets under management. Looking ahead, the partnership between 21Shares and Chainlink is poised to foster greater transparency and reliability in the digital asset space, thereby shaping the future of blockchain-based investments.
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