- 21Shares, a subsidiary of 21Shares AG, has successfully integrated Chainlink Proof of Reserve on the Ethereum mainnet.
- The integration enhances the transparency of the Ethereum reserves backing the 21Shares Core Ethereum ETF (CETH), which mirrors Ether’s performance and is physically backed by it.
- This strategic move is part of 21Shares’ broader objective to expand its product offerings in the U.S. market and deepen its presence there.
21Shares enhances Ethereum ETF transparency with Chainlink Proof of Reserve integration.
Enhancing Transparency in Ethereum Reserves
21Shares has chosen Chainlink as its decentralized computing platform, banking on Chainlink’s proven ability to handle over $12 trillion in on-chain market value. By adopting Chainlink’s Proof of Reserve (PoR), 21Shares aims to provide transparent visibility into the Ether reserves backing CETH. This move is expected to significantly bolster investor confidence.
Automation and Real-Time Verification
One of the standout benefits of integrating Chainlink’s PoR is the capability for automated on-chain verification. This feature empowers investors to implement automated logic based on the collateralization of CETH. Furthermore, PoR mitigates central points of failure in relaying external data to blockchains, ensuring reliable on-chain updates for CETH’s collateralization. The near real-time transparency provided by PoR allows investors to independently verify asset collateralization.
Strategic Alignment with Broader Goals
According to the Zurich-based financial institution, this integration aligns with its larger goals of expanding its product offerings in the U.S. market and solidifying its market presence. The move also comes in light of the recent launch of initial spot Ether ETFs, reflecting growing global momentum and crypto adoption.
Industry Insights and Future Prospects
This latest development follows 21Shares’ earlier integration of Chainlink Proof of Reserve for its Bitcoin reserves backing the ARK 21Shares Bitcoin ETF in February 2024. Since its inception in January 2024, the ARK 21Shares Bitcoin ETF has emerged as a leading spot Bitcoin ETP, currently managing $3.2 billion in assets.
Conclusion
The integration of Chainlink Proof of Reserve by 21Shares marks a significant step toward enhancing transparency and investor confidence in Ethereum-backed ETFs. This initiative not only solidifies 21Shares’ standing in the U.S. market but also underscores its commitment to adopting innovative technologies for ensuring the integrity and reliability of its financial products. As the crypto market continues to evolve, such strategic moves will likely play a crucial role in shaping the future landscape of digital asset investments.
