21.co, the parent entity of 21Shares, has announced the integration of Chainlink’s Proof-of-Reserve (PoR) service to bolster the transparency of its wrapped Bitcoin offering, known as 21BTC. This move, unveiled on September 23, 2024, will see the implementation of Chainlink’s PoR on both the Solana and Ethereum blockchains.
Enhancing Transparency with Chainlink
The integration is designed to increase the transparency of 21BTC, a token that launched on Solana in May 2024 and on Ethereum in September 2024. Each 21BTC is backed 1:1 by Bitcoin held in cold storage and institutional custody. By utilizing Chainlink’s PoR, 21.co will enable real-time on-chain verification of these reserves, allowing users to independently confirm the token’s backing.
Operational Details and Security
21.co will implement this feature through Onyx, its digital asset management platform. The PoR service is expected to provide real-time updates on reserve status, enhancing both user trust and asset security throughout the minting process. Johann Eid, Chief Business Officer at Chainlink Labs, highlighted that this initiative represents a crucial advancement in the growth of tokenization, emphasizing the importance of secure minting processes.
Broader Industry Implications
This partnership reflects the cryptocurrency industry’s broader trend towards decentralization, with a focus on improving transparency across various domains such as real-world assets, decentralized finance, global trade, and gaming. The integration of Chainlink’s Proof-of-Reserve aligns with this trend, aiming to fortify the decentralized ecosystem and build greater confidence in digital assets.
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