21Shares integrates Chainlink proof-of-reserve system to increase transparency of Ethereum reserves

21Shares, part of 21Shares AG, has announced the integration of Chainlink Proof of Reserve on the ethereum mainnet. This improves the transparency of the ethereum reserves backing the 21Shares ethereum Core ETF (CETH), which is physically backed by Ether and tracks its performance.

The Zurich-based financial institution said the latest move aligns with its broader goals of expanding its product line in the U.S. and strengthening its presence in the American market.

We're increasing visibility for the 21Shares Spot ethereum ETF (CETH)

21Shares said it chose Chainlink as its decentralized computing platform due to its proven track record in enabling over $12 trillion in value to on-chain markets. By integrating Chainlink’s Proof of Reserve (PoR), 21Shares claimed it ensures transparent visibility into the Ether reserves backing CETH, increasing investor confidence, according to the official. ethereum-ETF-CETH.html” target=”_blank” rel=”noopener” data-wpel-link=”external”>Press release.

Key benefits include automated on-chain verification, allowing investors to create automated logic based on CETH collateralization. Meanwhile, PoR eliminates central points of failure in transmitting external data to blockchains, ensuring consistent and reliable on-chain updates for CETH collateralization. Additionally, it provides near real-time transparency, allowing investors to verify asset collateralization independently.

Commenting on the latest integration, Johann Eid, Chief Business Officer at Chainlink Labs, said:

“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 ethereum Core ETF through Chainlink Proof of Reserve. 21Shares is playing an important role in supporting the adoption of digital assets, and the Chainlink platform is helping financial institutions realize the vision of seamless tokenization on a global scale.”

The announcement comes a week after the first Ether ETFs began trading in the US, which Ophelia Snyder, co-founder and president of 21Shares, said reflected the growing global momentum and adoption of cryptocurrencies.

The executive added that Chainlink PoR has significantly improved the transparency of its bitcoin spot ETP, making the decision to use Chainlink’s reserve verification service for the ethereum spot ETP, CETH, a “no-brainer.”

21Shares-Chainlink Integration for Spot bitcoin ETF

The latest update comes a few months after 21Shares integrated Chainlink Proof of Reserve in February 2024 to boost transparency of the bitcoin reserves backing the 21Shares ARK bitcoin ETF.

Launched in January 2024, the ARK 21Shares bitcoin ETF (ARKB) is a leading spot bitcoin ETP and currently has $3.2 billion in assets under management.

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