In a recent announcement, 21Shares AG revealed their integration of Chainlink Proof of Reserve on the Ethereum mainnet. This move aims to provide greater transparency regarding the reserves backing their Core Ethereum ETF (CETH). By implementing Chainlink’s technology, 21Shares seeks to bolster investor confidence by offering real-time visibility into the Ether reserves supporting CETH.
Eliminating Points of Failure
One of the key benefits of incorporating Chainlink’s Proof of Reserve is the elimination of central points of failure in transmitting external data to blockchains. This ensures consistent and reliable updates on CETH’s collateralization. The automated verification process also allows investors to create logic based on the underlying assets, further streamlining the investment experience.
This collaboration between 21Shares and Chainlink marks a significant milestone in the cryptocurrency industry. Johann Eid, Chief Business Officer of Chainlink Labs, highlighted the importance of improved transparency in digital asset investments. By leveraging Chainlink’s technology, financial institutions can enhance the tokenization process on a global scale.
The decision to integrate Chainlink Proof of Reserve comes at a time when the adoption of cryptocurrency investments is on the rise. With the recent launch of spot Ether ETFs for trading in the US, the need for transparent and secure investment options has become more apparent. 21Shares’ commitment to providing greater visibility into their ETFs reflects the evolving demands of investors in the digital asset space.
Continued Innovation
This latest update follows 21Shares’ earlier integration of Chainlink Proof of Reserve for their ARK 21Shares Bitcoin ETF. By extending this technology to their Core Ethereum ETF, 21Shares demonstrates a commitment to ongoing innovation and transparency in their investment products. The success of their Bitcoin ETF, which currently holds $3.2 billion in assets under management, serves as a testament to the value of incorporating Chainlink’s Proof of Reserve technology.
Overall, the integration of Chainlink Proof of Reserve in 21Shares’ ETFs signifies a step towards greater transparency and accountability in the cryptocurrency investment space. By leveraging decentralized computing platforms like Chainlink, financial institutions can enhance investor confidence and adapt to the changing landscape of digital asset investments. As the market continues to evolve, innovations in blockchain technology will play a crucial role in shaping the future of cryptocurrency investments.
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