21Shares has integrated Chainlink’s Proof of Reserve on the Ethereum mainnet to enhance the transparency of its Ethereum ETF reserves. This 21Shares Chainlink Integration seems to offer real-time, secure verification of ETH reserves supporting the 21Shares Core Ethereum ETF (CETH), affirming CETH as a true holder of Ether (ETH), the second-largest cryptocurrency by market cap.
Chainlink’s Role in Securing Ethereum ETF Reserves
Chainlink was allegedly chosen by 21Shares for its widely accepted decentralized platform for computation. The integration of Chainlink’s Proof of Reserve aims to provide complete visibility into the ETH reserves underlying CETH. Investors now have real-time access to reserve data and history through an off-chain feed that pulls data directly from Coinbase. This ensures that CETH’s collateralization is transparent and secure, supported by Chainlink’s platform, which enables more than $12 trillion in on-chain markets.
Features of Chainlink Proof of Reserve
Chainlink Proof of Reserve offers numerous favourable features, including automated on-chain verification, decentralization, and transparency. Automated on-chain verification, incorporated into a reference contract with up-to-date data, allows for automated logic to be built by both investors and protocols based on changes in CETH’s collateralization state. The decentralized nature of Chainlink Proof of Reserve aims to ensure updates without central points, providing reliable information on CETH’s collateralization on the chain. This transparency enables anyone to monitor Proof of Reserve feeds in near real-time, enabling independent verification of asset collateralization.
21Shares Chainlink Integration: Industry Impact and Adoption
21Shares Chainlink Integration reportedly comes after the approval of the first spot Ethereum ETFs in the United States, which began trading on July 23, 2024. News sources report that in January 2024, 21Shares included Chainlink Proof of Reserve in their spot Bitcoin ETF (ARKB) and now manages $3.2 billion in assets. After successfully implementing BTC reserves, they sought additional methods to foster confidence and openness among investors with their Ether ETF.
Johann Eid, CEO of Chainlink Labs, commented on the partnership: “This integration is critical to enhancing transparency in the industry and promoting the adoption of digital assets. It will enable financial institutions to achieve seamless tokenization globally.”
BlackRock’s Warning Against Investment Scams
In a related development, BlackRock has allegedly issued warnings about an increase in investment-related scams, particularly those involving cryptocurrency investment websites and social media platforms like WhatsApp and Telegram. A crypto report highlighted that BlackRock and its executives do not solicit investments or payments via social media. The company advised the public to remain vigilant and avoid engaging in suspicious activities.
These scams often involve fraudsters impersonating BlackRock representatives, using fake profiles, and messaging individuals to solicit investments. BlackRock emphasized that it does not engage in such practices and that any communication or investment opportunities should be verified through official channels. The public is urged to report any suspicious activity to the relevant authorities to prevent falling victim to these scams.
Conclusion
The 21Shares Chainlink Integration reportedly signifies a major step towards transparency in the Ethereum ETF market. By utilizing Chainlink’s decentralized system, which secures $3.2 billion in assets for 21Shares’ Ethereum and Bitcoin ETFs, the company aims to ensure that investors have real-time visibility into their reserves. This move not only boosts confidence among investors but also sets a new standard for transparency in the industry. As the adoption of digital assets continues to grow, such integrations will play a crucial role in maintaining trust and security in the market. Stay updated with the latest events in the crypto arena with Turkisy NY Radio.
