- Chainlink chosen for its reliable decentralized platform capabilities; provides investors with real-time data on Ethereum reserves via Coinbase.
- Integration aims to foster greater transparency and trust in digital assets, promoting wider adoption and financial institutional engagement.
21Shares U.S. LLC, an affiliate of 21Shares AG, has recently enhanced the transparency of its Ethereum reserves by integrating Chainlink’s Proof of Reserve on the Ethereum mainnet. This integration is specifically designed for the 21Shares Core Ethereum ETF (CETH), confirming that CETH genuinely holds Ether (ETH), which is the second-largest cryptocurrency by market capitalization.
Chainlink was selected by 21Shares due to its reputation as a reliable decentralized platform for computation. By leveraging Chainlink’s Proof of Reserve, 21Shares can now offer full visibility into the ETH reserves underpinning CETH.
Exciting news! 21Shares has integrated @Chainlink Proof of Reserve (PoR) on Ethereum to increase the transparency of the 21Shares Core Ethereum ETF’s (CETH) reserves.
This integration of Chainlink's Proof of Reserve ensures investors have real-time visibility into the Ethereum… pic.twitter.com/OivK5OASPS
— 21Shares US (@21shares_us) July 29, 2024
This allows investors to access real-time reserve data and historical information via an off-chain feed sourced directly from Coinbase, ensuring that the collateralization of CETH is both transparent and secure.
This integration extends beyond mere transparency. According to Johann Eid, CEO of Chainlink Labs, this collaboration plays a crucial role in enhancing transparency within the industry and supports the broader adoption of digital assets. Eid emphasized that this technological integration facilitates seamless tokenization for financial institutions globally.
The implementation of Chainlink’s Proof of Reserve in CETH follows the successful inclusion of the same technology in 21Shares’ spot Bitcoin ETF (ARKB) in January 2024.
With $3.2 billion under management, the prior success with Bitcoin reserves has encouraged 21Shares to adopt similar measures for their Ethereum ETF, aiming to continue building investor confidence and maintaining transparency.
The benefits of Chainlink’s Proof of Reserve are manifold. It offers automated on-chain verification and updates the data without central points of control, thereby ensuring reliability. This decentralization and transparency allow for real-time monitoring and independent verification of asset collateralization.
In a related development, BlackRock has issued a warning about the rise in investment scams, particularly through cryptocurrency websites and social media platforms. BlackRock clarified that it does not solicit investments via social media and urged the public to exercise caution and avoid engaging with suspicious activities.
