In a move designed to enhance investor confidence and transparency, 21shares, a leading issuer of crypto exchange-traded products (ETPs), has announced the integration of Chainlink’s Proof of Reserve on the Ethereum mainnet for its 21shares Core Ethereum ETF (CETH).
The integration marks a significant step forward for the crypto asset management firm, as it seeks to provide real-time visibility into the ethereum (ETH) reserves backing the ETF. By leveraging Chainlink’s decentralized data verification system, 21shares aims to offer investors an independent means of verifying the asset collateralization.
“This collaboration underscores the growing importance of transparency in the digital asset space,” said Johann Eid, Chief Business Officer of Chainlink Labs. “21shares is demonstrating a strong commitment to investor protection by adopting Chainlink’s industry-standard Proof of Reserve solution.”
Ophelia Snyder, co-founder and president of 21shares, echoed this sentiment, stating, “We believe that transparency is paramount to building trust in the digital asset ecosystem. By integrating Chainlink’s Proof of Reserve, we are further solidifying our position as a leader in providing secure and reliable investment products.”
The integration of Chainlink’s Proof of Reserve for CETH follows the successful implementation of the same technology for the Ark Invest and 21shares Bitcoin ETF earlier this year. This consistent adoption of Chainlink’s solution highlights a growing industry trend towards enhanced transparency and accountability.
With approximately 2,800 ETH currently held by the CETH fund, valued at around $9.29 million, the integration of Chainlink’s Proof of Reserve is expected to provide investors with greater confidence in the fund’s underlying assets.
This development comes as the cryptocurrency industry continues to mature and as regulatory scrutiny intensifies. The use of blockchain technology to verify asset holdings is seen by many as a crucial step in building trust and credibility within the sector.
As the digital asset landscape evolves, initiatives like the integration of Chainlink’s Proof of Reserve by 21shares are likely to become increasingly commonplace, setting a higher standard for transparency and accountability in the industry.
