21Shares – which is part of 21Shares AG – has announced the integration of Chainlink Proof of Reserve on the Ethereum mainnet. It improves the transparency of the Ethereum reserves backing the 21Shares Core Ethereum ETF (CETH), which is physically backed by Ether and tracks its performance.
The Zurich-based financial institution said that the latest move aligns with its broader goals to expand its US product lineup and strengthen its presence in the US market.
Boosting Visibility for 21Shares’ Spot Ethereum ETF (CETH)
21Shares said it chose Chainlink as its decentralized computing platform due to the latter’s proven track record in enabling over $12 trillion in value for on-chain markets. By integrating Chainlink’s Proof of Reserve (PoR), 21Shares asserted that it ensures transparent visibility into the Ether reserves backing CETH, increasing investor confidence, according to the official press release.
Key benefits include automated on-chain verification, which allows investors to create automated logic based on CETH’s collateralization. Meanwhile, the PoR removes central points of failure in transmitting external data to blockchains, ensuring consistent and reliable on-chain updates for CETH’s collateralization. Additionally, it provides near real-time transparency, enabling investors to verify asset collateralization independently.
Commenting on the latest integration, Johann Eid, Chief Business Officer of Chainlink Labs, said,
“We’re excited to further our collaboration with 21Shares and support a major milestone in our industry’s history by bringing enhanced transparency to the 21Shares Core Ethereum ETF through Chainlink Proof of Reserve. 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.”
This announcement comes a week after the initial spot Ether ETFs went live for trading in the US, which, according to Ophelia Snyder, Co-Founder and President of 21Shares, reflected the growing global momentum and adoption of crypto.
The exec added that Chainlink PoR has significantly improved the transparency of their spot Bitcoin ETP, making the choice to use Chainlink’s reserves verification service for the spot Ethereum ETP, CETH, a “no-brainer.”
21Shares-Chainlink’s Integration for Spot Bitcoin ETF
The latest update arrives a few months after 21Shares integrated Chainlink Proof of Reserve in February 2024 to boost the transparency of the Bitcoin reserves backing the ARK 21Shares Bitcoin ETF.
Launched in January 2024, the ARK 21Shares Bitcoin ETF (ARKB) is a leading spot Bitcoin ETP and currently holds $3.2 billion in assets under management.