21Shares integrates Chainlink Proof of Reserve to increase the transparency of Ethereum reserves

21Shares, part of 21Shares AG, has announced the integration of Chainlink Proof of Reserve into the Ethereum mainnet. It improves the transparency of Ethereum reserves by supporting the 21Shares Core Ethereum 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 United States and strengthening its presence in the North American market.

Improve visibility of 21Shares Spot Ethereum ETF (CETH)

21Shares said it chose Chainlink as its decentralized computing platform because of the latter’s proven track record of enabling more than $12 trillion in value for on-chain markets. By integrating Chainlink’s Proof of Reserve (PoR), 21Shares claimed to ensure transparent visibility of the Ether reserves backing CETH, increasing investor confidence, according to the official press release.

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

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

“We are delighted to continue our partnership with 21Shares and support an important milestone in our industry’s history by bringing enhanced transparency to the 21Shares Core Ethereum ETF through Chainlink Proof of Reserve. 21Shares is playing an important role in support the adoption of digital assets, and the Chainlink platform is helping financial institutions achieve the vision of seamless tokenization on a global scale.”

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

The executive added that Chainlink PoR has significantly improved the transparency of its local Bitcoin ETP, making the option to use Chainlink’s reserve verification service for the local Ethereum 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 increase the transparency of the Bitcoin reserves backing the 21Shares ARK Bitcoin ETF.

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

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