The integration seeks to enhance transparency for 21Shares’ Ether ETF, potentially increasing investor trust.
21Shares, one of the world’s largest issuers of crypto exchange-traded products (ETPs), has integrated Chainlink’s proof-of-reserve (PoR) system to enhance the transparency of its Core Ethereum ETF (CETH).
The 21Shares CETH offers a streamlined and secure way to invest in Ethereum, eliminating the complexities of direct ownership. CETH buys ETH and holds the funds through Coinbase Custody.
Commenting on the recent 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.”
Why Chainlink?
According to a press release, 21Shares noted that it chose Chainlink, a decentralized blockchain oracle network built on Ethereum, as its preferred decentralized computing platform because of Chainliink’s proven track record in securing over $12 trillion in total value for on-chain markets.
The firm also noted that the incorporation offers clear visibility into CETH’s underlying ETH reserves, which provides investors with increased assurances and confidence.
The transparency created by the new integration could further the path of digital asset adoption, according to Eid.
“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,” Eid said.
In addition, the PoR system will provide real-time reserve information and a historical record, accessible as a publicly verifiable stream that retrieves data straight from the Coinbase exchange. Some of the main benefits of PoR include automated on-chain verification, decentralization, and transparency.
US Ether ETF Approval
The integration follows the launch of the first wave of US spot Ether ETFs, which became available for trading on July 23.
According to Ophelia Snyder, the co-founder and president of 21Shares, the US approval spot ETH ETF underscores the growing global momentum and acceptance of crypto.
Meanwhile, 21Share had previously implemented Chainlink’s PoR solution for its spot Bitcoin ETF in February 2024.
