- 21shares announced that it has deployed Chainlink’s Proof of Reserve on the Ethereum mainnet in an attempt to improve the transparency of the exchange-traded fund (ETF) known as 21shares Core Ethereum, or CETH.
- The goal of this integration, according to the cryptocurrency exchange-traded product (ETP) issuer, is to give investors real-time access to the ETH reserves that support the ETF.
21shares Uses Chainlink To Increase CETH Transparency
21shares revealed on Monday that the move eliminates central points of failure and offers automated onchain verification by utilizing Chainlink’s decentralized data verification mechanism. The crypto asset management asserts that investors can use Chainlink’s Proof of Reserve feeds to independently verify asset collateralization. Chief business officer of Chainlink Labs Johann Eid stated that this partnership is a big step toward the widespread use of digital assets.
According to Eid at the announcement, 21shares is significantly assisting in the adoption of digital assets, and the Chainlink platform is assisting financial institutions in realizing the goal of seamless tokenization on a worldwide basis.
The president and co-founder of 21shares, Ophelia Snyder, stressed that the integration is in line with the company’s goal of bridging traditional and decentralized finance (defi). Using Chainlink’s industry-standard reserves verification technology for our spot Ethereum ETP, CETH, was an obvious choice, according to Snyder, as Chainlink Proof of Reserve has already improved the transparency of our spot Bitcoin ETP since its inception.
The step, which further demonstrates 21shares’ dedication to openness and investor confidence, comes after Chainlink’s Proof of Reserve for the Ark Invest and 21shares Bitcoin ETF was successfully implemented earlier this year, the business concluded. As of the time of publication, the 21shares fund CETH possessed over 2,800 Ethereum (ETH), which, at the current rate of exchange, is worth approximately $9.29 million.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
