TL;DR
- 21Shares has added Chainlink Proof of Reserve to the Ethereum mainnet to improve transparency for the 21Shares Core Ethereum ETF (CETH).
- Chainlink’s solution provides real-time data on Ether reserves backing CETH, publicly accessible via an offchain reserve feed.
- The Chainlink integration underscores 21Shares’ growth in the U.S. market and its commitment to transparency in cryptocurrency products.
21Shares US LLC, a subsidiary of 21Shares AG, has taken a major step in improving transparency in the cryptocurrency market by integrating Chainlink Proof of Reserve (PoR) on the Ethereum mainnet.
This integration aims to provide clear visibility into the Ether reserves backing the 21Shares Core Ethereum ETF (CETH), an investment product physically backed by Ether (ETH), the second-largest cryptocurrency by market capitalization.
.@21shares_us has integrated Chainlink Proof of Reserve (PoR) to increase reserves transparency for the 21Shares Core Ethereum ETF (CETH).
PoR now enhances transparency for both the spot #Bitcoin and @ethereum ETPs issued by 21Shares.https://t.co/2uvrrTCD7c pic.twitter.com/j3eFBNIXVR
— Chainlink (@chainlink) July 29, 2024
CETH tracks the performance of ETH and marks the latest addition to 21Shares growing product offering in the United States.
Chainlink Proof of Reserve has become the solution of choice for 21Shares due to its proven track record in enabling transactions worth over $12 trillion in total value across blockchain markets.
Chainlink‘s technology enables real-time reserve data and reserve history to be publicly accessible through an offchain reserve feed that pulls data directly from Coinbase.
This approach not only ensures that reserves are transparent and secure, but also maintains the integrity of the asset and builds investor confidence.
One of the main benefits of Proof of Reserve is its ability to offer automated verification on the blockchain.
This allows investors and protocols to build automated logic based on updates to CETH collateralization.
Additionally, as a decentralized solution, Chainlink Proof of Reserve eliminates central points of failure in delivering external data to blockchains, helping to ensure reliable updates at all times.
Transparency is another strong point, as Proof of Reserve Feeds can be monitored by anyone in near real–time, allowing investors to independently verify asset collateralization.
21Shares Moves Towards Global Adoption
The addition of Chainlink Proof of Reserve to CETH is not an isolated event, but part of a broader movement towards greater transparency in the cryptocurrency sector.
In February 2024, 21Shares also announced the integration of Chainlink Proof of Reserve to improve the transparency of Bitcoin reserves by supporting the ARK 21Shares Bitcoin ETF, ARKB.
This Bitcoin ETF, launched in January 2024, currently manages assets worth $3.2 billion.
The integration of Chainlink into CETH reinforces 21Shares commitment to transparency and security in its investment products, and highlights the importance of blockchain technology in improving investor confidence.
Ophelia Snyder, co-founder and president of 21Shares, has emphasized that the use of Chainlink Proof of Reserve for CETH is a natural extension of its success with the ARK 21Shares Bitcoin ETF, and reflects the growing integration between traditional and decentralized finance.
This development underscores not only 21Shares continued growth in the US market, but also the global push toward the adoption of more transparent and accessible cryptocurrency products.
The collaboration between 21Shares and Chainlink marks an important milestone in the history of the cryptocurrency market, bringing investors closer to a clearer and more secure view of the real value of their assets.
