According to CryptoPotato, 21Shares, a part of 21Shares AG, has integrated Chainlink Proof of Reserve on the Ethereum mainnet to enhance the transparency of the Ethereum reserves backing its Core Ethereum ETF (CETH). This ETF is physically backed by Ether and tracks its performance. The Zurich-based financial institution stated that this move aligns with its broader goals to expand its US product lineup and strengthen its presence in the US market.
21Shares chose Chainlink as its decentralized computing platform due to its proven track record in enabling over $12 trillion in value for on-chain markets. By integrating Chainlink’s Proof of Reserve (PoR), 21Shares aims to ensure transparent visibility into the Ether reserves backing CETH, thereby increasing investor confidence. Key benefits include automated on-chain verification, which allows investors to create automated logic based on CETH’s collateralization. The PoR also removes central points of failure in transmitting external data to blockchains, ensuring consistent and reliable on-chain updates for CETH’s collateralization. Additionally, it provides near real-time transparency, enabling investors to verify asset collateralization independently.
Johann Eid, Chief Business Officer of Chainlink Labs, commented on the integration, expressing excitement about furthering collaboration with 21Shares and supporting a major milestone in the industry by bringing enhanced transparency to the 21Shares Core Ethereum ETF through Chainlink Proof of Reserve. Eid highlighted that 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.
This announcement follows the recent launch of the initial spot Ether ETFs for trading in the US. Ophelia Snyder, Co-Founder and President of 21Shares, noted that this reflects the growing global momentum and adoption of crypto. Snyder added that Chainlink PoR has significantly improved the transparency of their spot Bitcoin ETP, making the choice to use Chainlink’s reserves verification service for the spot Ethereum ETP, CETH, an obvious decision.
The latest update comes a few months after 21Shares integrated Chainlink Proof of Reserve in February 2024 to enhance the transparency of the Bitcoin reserves backing the ARK 21Shares Bitcoin ETF. Launched in January 2024, the ARK 21Shares Bitcoin ETF (ARKB) is a leading spot Bitcoin ETP and currently holds $3.2 billion in assets under management.
