In a recent announcement, 21Shares revealed its integration of Chainlink Proof of Reserve on the Ethereum mainnet. This integration is a significant step towards improving transparency in the Ethereum reserves backing the 21Shares Core Ethereum ETF (CETH). By utilizing Chainlink’s decentralized computing platform, 21Shares aims to provide investors with a clear view of the Ether reserves supporting CETH, thereby increasing confidence and trust in the investment product.
Automated Verification and On-Chain Updates
One of the key benefits of integrating Chainlink’s Proof of Reserve is the automated on-chain verification it offers. This feature allows investors to create automated logic based on CETH’s collateralization, enabling them to make informed investment decisions. Additionally, the PoR eliminates central points of failure in transmitting external data to blockchains, ensuring consistent and reliable on-chain updates for CETH’s collateralization. This near real-time transparency is crucial for investors looking to independently verify asset collateralization.
Johann Eid, Chief Business Officer of Chainlink Labs, expressed excitement about the collaboration with 21Shares. He emphasized the importance of bringing enhanced transparency to the 21Shares Core Ethereum ETF through Chainlink Proof of Reserve. Eid highlighted 21Shares’ role in supporting the adoption of digital assets and the role of the Chainlink platform in enabling seamless tokenization on a global scale.
The integration of Chainlink Proof of Reserve comes at a time when the global momentum and adoption of cryptocurrencies are on the rise. Ophelia Snyder, Co-Founder and President of 21Shares, noted that the recent launch of spot Ether ETFs for trading in the US showcased this growing trend. This positive development underscores the importance of transparency in cryptocurrency investments and the significant role that technologies like Chainlink can play in this space.
21Shares’ integration of Chainlink Proof of Reserve for the spot Ethereum ETP, CETH, follows a similar move made earlier for the ARK 21Shares Bitcoin ETF. The decision to leverage Chainlink’s reserves verification service for both Bitcoin and Ethereum products underscores the firm’s commitment to enhancing transparency and trust in its investment offerings. With the increasing demand for digital assets in the financial market, initiatives like these are crucial in building investor confidence and driving further adoption of cryptocurrencies.
