21Shares, a subsidiary of 21Shares AG, has recently announced the integration of Chainlink Proof of Reserve on the Ethereum mainnet. This integration is aimed at improving the transparency of the Ethereum reserves that back the 21Shares Core Ethereum ETF (CETH). The ETF is physically backed by Ether and tracks its performance, providing investors with a way to gain exposure to the cryptocurrency market. By incorporating Chainlink’s Proof of Reserve technology, 21Shares is taking steps to enhance trust and confidence among investors.
One of the key benefits of integrating Chainlink’s Proof of Reserve is the automated on-chain verification it provides. This feature allows investors to create automated logic based on CETH’s collateralization, making it easier to track and verify the assets backing the ETF. 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. The near real-time transparency offered by Chainlink’s technology enables investors to independently verify the asset collateralization, further increasing trust in the ETF.
Johann Eid, Chief Business Officer of Chainlink Labs, expressed excitement about the collaboration with 21Shares and the milestone achieved through the integration of Chainlink Proof of Reserve. He highlighted the importance of transparency in the digital asset space and commended 21Shares for supporting the adoption of cryptocurrencies. The partnership between 21Shares and Chainlink is seen as a significant step towards enabling seamless tokenization on a global scale.
The decision to integrate Chainlink’s PoR comes as part of 21Shares’ broader strategy to expand its US product lineup and strengthen its presence in the US market. The move follows the recent launch of spot Ether ETFs for trading in the US, reflecting the growing global momentum and adoption of cryptocurrencies. Ophelia Snyder, Co-Founder and President of 21Shares, emphasized the role of Chainlink PoR in enhancing the transparency of their spot Bitcoin ETP, making it a logical choice for the spot Ethereum ETP, CETH.
This latest update builds on 21Shares’ previous integration of Chainlink Proof of Reserve for the ARK 21Shares Bitcoin ETF to boost transparency in the Bitcoin reserves backing the ETF. The ARK 21Shares Bitcoin ETF is a leading spot Bitcoin ETP that holds billions of dollars in assets under management, showcasing the trust and confidence that investors have in the product. With the integration of Chainlink’s technology, 21Shares is reinforcing its commitment to transparency and trust in the digital asset space.