21.co integrates Chainlink’s proof of reserve on Solana and Ethereum

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As a seasoned researcher with years of experience in the dynamic world of blockchain technology and cryptocurrencies, I find this development between 21.co and Chainlink intriguing. The emphasis on transparency and decentralization is a step forward in creating a more trustworthy ecosystem for digital assets like 21BTC.

21.co, the umbrella organization behind the issuer of crypto exchange-traded products, 21Shares, has adopted Chainlink’s Proof-of-Reserve system to boost the transparency associated with its wrapped Bitcoin.

21.co announced on September 23 that they will use Chainlink’s proof of reserve service, which is available on both Solana and Ethereum networks. This integration is intended to enhance the transparency of the reserves associated with 21.co’s wrapped Bitcoin, known as 21BTC.

21.co eyes on-chain reserves transparency for its 21BTC

21BTC launched on Solana in May 2024 and on Ethereum in early September 2024.

Each token is directly tied to an equivalent amount of Bitcoin stored securely in offline vaults and professional custodianship. Chainlink’s system will make this reserve information publicly available on the blockchain, allowing users to independently confirm it.

According to the announcement, 21.co plans to employ Proof-of-Reserves (PoR) through Onyx, their digital asset management system. This partnership aims to offer users real-time confirmation of 21BTC reserves. Additionally, the implementation of Proof-of-Reserves is intended to strengthen user and asset protection during the minting phase.

In a comment, Chainlink Labs Chief Business Officer Johann Eid stated that secure minting is a step toward further growth in tokenization.

Through improved transparency, partnering with Chainlink strengthens the overall decentralization of 21BTC across both the Ethereum and Solana networks.

This supports the wider goal of the crypto sector, which is to establish a distributed network, emphasizing aspects like tangible assets, peer-to-peer finance, international commerce, and virtual gaming.

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2024-09-23 21:24