21Shares, a part of 21Shares AG, recently announced the integration of Chainlink Proof of Reserve on the Ethereum mainnet. This integration aims to enhance the transparency of the Ethereum reserves that back the 21Shares Core Ethereum ETF (CETH). By utilizing Chainlink’s decentralized computing platform, 21Shares ensures that investors have clear visibility into the Ether reserves supporting CETH. This move not only increases investor confidence but also aligns with 21Shares’ goal of expanding its US product lineup and strengthening its presence in the US market.
One of the key benefits of integrating Chainlink’s Proof of Reserve (PoR) is the automated on-chain verification it provides. This allows investors to create automated logic based on CETH’s collateralization, making the investment process more efficient and transparent. Additionally, PoR eliminates central points of failure in transmitting external data to blockchains, ensuring consistent and reliable updates on CETH’s collateralization. The near real-time transparency offered by PoR also enables investors to independently verify asset collateralization, further building trust in the investment product.
Industry Recognition and Collaboration
Johann Eid, Chief Business Officer of Chainlink Labs, expressed excitement about the collaboration with 21Shares and highlighted the significance of bringing enhanced transparency to the 21Shares Core Ethereum ETF through Chainlink Proof of Reserve. Eid emphasized that 21Shares is playing a crucial role in supporting the adoption of digital assets, and Chainlink’s platform is instrumental in achieving seamless tokenization on a global scale. This recognition underscores the importance of industry partnerships in driving innovation and transparency in the financial sector.
The recent integration of Chainlink Proof of Reserve for the CETH ETF follows 21Shares’ previous integration for the ARK 21Shares Bitcoin ETF. This demonstrates the company’s commitment to enhancing transparency and investor confidence across its product offerings. The successful launch of the ARK 21Shares Bitcoin ETF in January 2024, which currently holds $3.2 billion in assets under management, further highlights the market demand for transparent and reliable investment products. By leveraging Chainlink’s proven track record and innovative solutions, 21Shares is well-positioned to continue its growth trajectory in the digital asset market.
The integration of Chainlink Proof of Reserve by 21Shares for its Ethereum ETF marks a significant milestone in enhancing transparency and trust for investors. By leveraging Chainlink’s decentralized computing platform, 21Shares is demonstrating its commitment to providing innovative and reliable investment products in an evolving digital asset landscape. This collaboration highlights the importance of industry partnerships in driving technological advancements and promoting investor confidence in the financial sector.
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