Key points
- 21Shares uses Chainlink Proof of Reserve to verify eth reserves in real-time.
- Automated on-chain verification, decentralization, and transparency are key benefits of the integration.
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21Shares US LLC, a subsidiary of 21Shares AG and a major player in exchange-traded crypto products, is partnering with Chainlink, a leading decentralized oracle network, to integrate Chainlink Proof of Reserve (PoR), the companies announced Monday. The integration aims to improve transparency of the ethereum reserves backing the 21Shares Core ethereum ETF (CETH).
Chainlink’s proof-of-reserve system allows CETH investors to access real-time data on the underlying bitcoin reserves and track their history, ensuring the ETF accurately tracks eth’s performance, Chainlink claimed.
“We are excited to continue our collaboration with 21Shares and support an important milestone in our industry’s history by bringing greater transparency to the 21Shares Core ethereum ETF through Chainlink Proof of Reserve,” said Johann Eid, Chief Business Officer at Chainlink Labs, on the collaboration.
Chainlink’s adoption of PoR provides real-time data on the state of reserves, which is publicly accessible via Coinbase’s off-chain reserve feed. This feature not only protects holdings but also maintains asset integrity and builds trust among investors by removing central points of failure in data delivery, Chainlink noted.
Ophelia Snyder, co-founder and president of 21Shares, highlighted the broader impact of this integration, saying:
“The US approval of an ethereum spot ETF is further evidence of the momentum and global adoption of cryptocurrencies, and brings us one step closer to our mission of bridging the gap between traditional finance and decentralized finance.”
The latest integration comes after 21Shares' ethereum Spot ETF, along with other ethereum products, began trading last week. As of July 29, the 21Shares fund had attracted $7.5 million in net inflows, according to Farside Investors.
The move follows the successful integration of Chainlink Proof of Reserve for the ARK 21Shares bitcoin ETF earlier this year after the fund began operating in the US.
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