21Shares Implements Chainlink Proof of Reserve to Enhance ETF Transparency

21Shares has integrated Chainlink Proof of Reserve with its Core Ethereum ETF (CETH), ensuring that the Ether reserves backing CETH are publicly verifiable in real-time.

Utilizing Chainlink’s Proof of Reserve aims to provide investors with greater assurance that CETH is indeed backed by actual ETH holdings. CETH, which is backed by Ether (ETH), seeks to track ETH’s performance. The reserve data is available through a feed that directly pulls information from Coinbase Custody.

“Chainlink Proof of Reserve has already been helping to enhance the transparency of our spot Bitcoin ETP since its initial launch, making the decision to leverage Chainlink’s reserves verification service for our spot Ethereum ETP, CETH, a no-brainer,” said Ophelia Snyder, Co-Founder and President of 21Shares.

Chainlink was chosen because of its established record in facilitating secure transactions, having enabled over $12 trillion of onchain transactions to date. The benefits of implementing the Proof of Reserve include automated onchain verification, reduced risk of centralized points of failure for reserve data, and independently verifiable reserve information.

“21Shares is playing an important role in supporting the adoption of digital assets, and the Chainlink platform is helping financial institutions realize the vision of seamless tokenization on a global scale,” said Johann Eid, Chief Business Officer of Chainlink Labs.

Chainlink’s LINK token is a top 20 digital asset, with a market capitalization of $8.4 billion, according to CoinGecko. It’s up nearly 80% in the past 12 months but has been trading sideways between $13 and $16 for most of this year.