- 21Shares integrates Chainlink’s Proof of Reserve into Core Ethereum ETF to enhance transparency and investor confidence.
- Chainlink’s Proof of Reserve provides real-time, independent verification of CETH’s collateralization, ensuring data security and reliability.
- Chainlink Proof of Reserve eliminates central points of failure, with feeds monitored in near real-time, boosting investor trust.
21Shares, a US LLC subsidiary of 21Shares AG, has integrated Chainlink’s Proof of Reserve technology into Core Ethereum ETF (CETH). This strategic move aims to increase transparency of Ethereum reserves backing ETF and bolster investor confidence.
Chainlink’s Proof of Reserve offers real-time and historical data on reserves. It allows anyone to independently verify collateralization of CETH. This integration ensures that the ETF is transparently backed by Ether (ETH) which is the second-largest cryptocurrency by market capitalization.
Back in February 2024 21Shares had already integrated Chainlink Proof of Reserve for Bitcoin reserves backing ARK 21Shares Bitcoin ETF. Launched in January 2024, this Bitcoin ETF currently holds $3.2 billion in assets under management. One standout feature of Chainlink Proof of Reserve is its automated on-chain verification.
This feature keeps on-chain data constantly updated in reference contracts. Consequently investors and protocols can build automated logic based on updates to CETH’s collateralization. This helps maintain integrity of assets and builds trust among investors
Chainlink Proof of Reserve eliminates central points of failure in delivering external data to blockchains. It ensures reliable on-chain updates at all times regarding CETH’s collateralization. This decentralized approach enhances security and reliability of data.
The Proof of Reserve feeds can be monitored by anyone in near real-time. This allows investors to independently verify asset collateralization. It is crucial for maintaining investor confidence and trust.
Chainlink’s Proof of Reserve technology is gaining traction globally. For instance, Wenia backed by Colombia’s largest bank Bancolombia Group has also integrated Chainlink’s Proof of Reserve to enhance transparency and security of its stablecoin COPW.
21Shares’ integration of Chainlink’s Proof of Reserve marks a significant step towards ensuring transparency. It builds stronger investor trust in the ETF market. This move also underscores the growing role of blockchain technology in the financial sector.
