21Shares, a provider of cryptoinvestment products, today announced integration with Chainlink Proof of Reserve on the Ethereum network, increasing the transparency of the bitcoin reserves backing the ARK 21Shares Bitcoin ETF, ARKB.
ARKB investors can now confirm that the #ETF is fully backed by bitcoins by disclosing the history of underlying #bitcoin reserves and reserves via Chainlink's Proof of Reserve (PoR). This source of off-chain reserves comes directly from Coinbase, which can report on-chain reserve data via Chainlink's oracle.
Ophelia Snyder, co-founder and president of 21Shares US, explains, "By integrating #Chainlink , a leader in tokenized asset reserve evidence, we have set a new standard for combining transparency and security in digital asset management. " She adds.
The benefits of PoR include automatic verification on the ARKB bitcoin collateral chain, decentralized distribution of external data on the blockchain, and transparent near real-time monitoring of Chainlink's PoR feed by anyone.
"By providing real-time, tamper-proof bitcoin reserve data, Chainlink Proof of Reserve makes the #ARK 21Shares Bitcoin ETF safe and transparent," says Johann Eide, Chief Business Officer at Chainlink Labs. "This not only makes it better, but also gives institutional investors and market participants the confidence to be active in blockchain finance.
The collaboration between 21Shares and ARK Invest has created a leading spot bitcoin ETF with a net asset value of approximately $1.6 billion since launching in January 2024.
Chainlink's adoption of PoR from Chainlink is not limited to ARKB; other #Web3 projects such as Aave, Gemini and TrustToken have already integrated the solution ahead of ARKB.
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