In today’s rapidly evolving financial landscape, transparency is key when it comes to investments in the crypto market. Recently, 21Shares, a part of 21Shares AG, made an important announcement regarding the integration of Chainlink Proof of Reserve on the Ethereum mainnet. This move highlights the company’s commitment to improving transparency in its offerings, particularly the 21Shares Core Ethereum ETF (CETH).
By integrating Chainlink’s Proof of Reserve (PoR), 21Shares aims to provide investors with transparent visibility into the Ether reserves backing CETH. This not only increases investor confidence but also allows for automated on-chain verification. Investors can now create automated logic based on CETH’s collateralization, removing central points of failure in transmitting external data to blockchains. Additionally, near-real-time transparency enables investors to independently verify asset collateralization.
Johann Eid, Chief Business Officer of Chainlink Labs, expressed excitement over the collaboration with 21Shares, emphasizing the importance of enhanced transparency in the industry. The partnership between the two companies signifies a milestone in ensuring seamless tokenization on a global scale. This collaboration comes at a crucial time, as the demand for digital assets continues to rise.
The announcement of Chainlink PoR integration by 21Shares follows the recent launch of spot Ether ETFs for trading in the US market. This move reflects the growing global momentum and adoption of crypto assets. Ophelia Snyder, Co-Founder and President of 21Shares, noted the significant improvement in transparency brought about by Chainlink PoR for the spot Bitcoin ETP. This improvement led to the decision to utilize Chainlink’s reserves verification service for the spot Ethereum ETP, CETH.
This latest update builds on 21Shares’ previous integration of Chainlink Proof of Reserve to enhance transparency in the crypto market. The ARK 21Shares Bitcoin ETF (ARKB) is a prime example of this transparency, with $3.2 billion in assets under management. As the adoption of digital assets continues to grow, initiatives like Chainlink PoR play a crucial role in providing investors with the transparency they need to make informed investment decisions.
The integration of Chainlink Proof of Reserve by 21Shares on the Ethereum mainnet signifies a step towards greater transparency in the crypto market. By leveraging decentralized computing platforms like Chainlink, financial institutions can provide investors with the visibility and confidence necessary to navigate the evolving landscape of digital assets. As the industry continues to mature, initiatives focused on transparency will be essential in building trust and driving widespread adoption.