The Integration of Chainlink Proof of Reserve by 21Shares

21Shares, a part of 21Shares AG, recently announced the integration of Chainlink Proof of Reserve on the Ethereum mainnet. This integration aims to improve the transparency of the Ethereum reserves that back the 21Shares Core Ethereum ETF (CETH). The ETF, which is physically backed by Ether, tracks its performance and provides investors with a more comprehensive view of its collateralization.

By integrating Chainlink’s Proof of Reserve, 21Shares ensures transparent visibility into the Ether reserves backing CETH. This move increases investor confidence as it enables automated on-chain verification and eliminates central points of failure in transmitting external data to blockchains. Additionally, it provides near real-time transparency, allowing investors to independently verify asset collateralization.

Johann Eid, Chief Business Officer of Chainlink Labs, expressed his excitement about further collaborating with 21Shares and supporting enhanced transparency for the 21Shares Core Ethereum ETF through Chainlink Proof of Reserve. This collaboration highlights the role of 21Shares in supporting the adoption of digital assets and the importance of the Chainlink platform in realizing seamless tokenization on a global scale.

This announcement comes on the heels of the initial spot Ether ETFs going live for trading in the US. Ophelia Snyder, Co-Founder and President of 21Shares, noted that the growing global momentum and adoption of crypto were reflected in this development. She emphasized how Chainlink Proof of Reserve had significantly enhanced the transparency of their spot Bitcoin ETP, making the decision to use Chainlink’s reserves verification service for the spot Ethereum ETP, CETH, an obvious choice.

This latest update follows 21Shares’ integration of 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 prominent spot Bitcoin ETP with $3.2 billion in assets under management. The continuous integration of Chainlink Proof of Reserve underscores 21Shares’ commitment to transparency and investor confidence in its various ETF offerings.