TL;DR
- 21.co has integrated Chainlink Proof of Reserve on the Solana and Ethereum mainnets to enhance the transparency of its Wrapped Bitcoin (21BTC).
- 21BTC, launched in May 2024, is a native token fully backed 1:1 by Bitcoin reserves, which are held in cold storage and under institutional custody.
- The implementation of Chainlink is crucial to ensure the minting process of 21BTC and provides users with assurances about its full backing.
21.co is working hard to improve the transparency of its Wrapped Bitcoin, known as 21BTC, by integrating Chainlink Proof of Reserve technology on the Solana and Ethereum mainnets.
This integration will enable real-time verification of the Bitcoin reserves backing 21BTC, ensuring a secure and reliable minting process. With this measure, the company aims to offer users greater peace of mind regarding the solidity of their digital assets.
.@21co__ has integrated Chainlink Proof of Reserve (PoR) on @ethereum & @solana to enhance reserves transparency for 21BTC, its wrapped Bitcoin.
How PoR provides the Ethereum & Solana ecosystems with assurances that 21BTC is fully backed 1:1 by BTC👇https://t.co/kUqFTlofcJ pic.twitter.com/SD6UdG4ABV
— Chainlink (@chainlink) September 23, 2024
Launched in May 2024, 21BTC is designed to be a native token completely backed 1:1 by Bitcoin reserves, which are held in cold storage and under institutional custody.
The recent expansion of 21BTC to Ethereum, announced in September 2024, complements its initial launch on Solana, providing users with native access to Bitcoin in a simple and secure manner that favors cross-chain compatibility and promotes market liquidity.
21.co Aims to Establish New Security Standards in the Industry
Industry leaders have praised this partnership, highlighting its importance for creating a more secure blockchain infrastructure. According to Johann Eid, Chief Business Officer at Chainlink Labs, the implementation of Chainlink Proof of Reserve is essential to secure the minting function of 21BTC, which in turn facilitates the tokenization of values in the market. Eliezer Ndinga, Head of Strategy and Business Development for Digital Assets at 21.co, also emphasized the importance of this technology in providing users with guarantees about the token’s full backing.
The integration of Chainlink offers several key benefits, including the creation of programmatic utility, allowing protocols to build automated logic around reserve data. Additionally, it ensures protection against malicious minting through cryptographic guarantees that back the minting of new tokens. This decentralized and transparent approach enables users to independently verify the collateralization of their assets in real time.
The adoption of Chainlink Proof of Reserve is a strategic move by 21.co that seeks not only to improve transparency but also to establish a standard in the industry for security and trust in cryptocurrencies.
