21Shares, a part of 21Shares AG, recently announced the integration of Chainlink Proof of Reserve on the Ethereum mainnet. This move aims to enhance the transparency of the Ethereum reserves backing the 21Shares Core Ethereum ETF (CETH), which is physically backed by Ether and tracks its performance.
The Zurich-based financial institution stated that this integration aligns with its broader goals of expanding its US product lineup and strengthening its presence in the US market. By leveraging Chainlink as its decentralized computing platform, 21Shares aims to provide investors with increased confidence in the collateralization of CETH.
One of the key benefits of integrating Chainlink’s Proof of Reserve (PoR) is the automated on-chain verification, allowing investors to establish automated logic based on CETH’s collateralization. This removes central points of failure in transmitting external data to blockchains, ensuring consistent and reliable on-chain updates for CETH’s collateralization. Additionally, it offers near real-time transparency, enabling investors to independently verify asset collateralization.
Johann Eid, Chief Business Officer of Chainlink Labs, expressed excitement about the collaboration with 21Shares and highlighted the significance of bringing enhanced transparency to the 21Shares Core Ethereum ETF through Chainlink Proof of Reserve. He emphasized the role of 21Shares in supporting the adoption of digital assets and how the Chainlink platform is facilitating seamless tokenization globally.
Market Trends
This announcement follows the recent launch of initial spot Ether ETFs for trading in the US, indicating the increasing global momentum and adoption of crypto. Ophelia Snyder, Co-Founder and President of 21Shares, mentioned how Chainlink PoR has enhanced the transparency of their spot Bitcoin ETP, making it an obvious choice for the spot Ethereum ETP, CETH.
Further Enhancements
This integration update comes after 21Shares previously integrated Chainlink Proof of Reserve in February 2024 to improve the transparency of the Bitcoin reserves backing the ARK 21Shares Bitcoin ETF. With the launch of the ARK 21Shares Bitcoin ETF in January 2024, it has become a leading spot Bitcoin ETP, currently managing $3.2 billion in assets.
The integration of Chainlink Proof of Reserve in the 21Shares Core Ethereum ETF marks a significant step towards increased transparency and investor confidence in the crypto market. This collaboration reflects the industry’s commitment to leveraging innovative solutions for enhancing the security and reliability of digital asset investments.
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