21.co, the parent company of 21Shares – one of the world’s largest issuers of crypto exchange traded products (ETPs), announced the integration of the industry-standard Chainlink Proof of Reserve on both Solana and Ethereum mainnets to increase the transparency of 21.co Wrapped Bitcoin (21BTC). The firm is leveraging Chainlink Proof of Reserve within 21.co’s digital asset management platform Onyx to automate real-time reserve verification and enable secure minting of 21BTC.
In May 2024, 21.co announced the launch of 21BTC on Solana, offering users native access to Bitcoin on Solana through a simple and secure solution that creates cross-chain compatibility, liquidity and utility. Earlier this month, the firm announced the expansion of its Wrapped Bitcoin ecosystem with the launch of 21BTC on Ethereum with one of the world’s largest market makers, Flow Traders. 21.co wrapped Bitcoin is built by institutions and for the digital asset community with institutional security and strong mechanisms to help ensure user protection.
Fintech News: Revolut Reaches 10 Million Customers in the UK
Chainlink has securely enabled over $15 trillion in transaction value and its infrastructure is seamless to integrate, time-tested in production, and provides ease of integration and widespread adoption – making Chainlink 21.co’s preferred decentralized computing platform and recommended service for bringing reserve data onchain.
21BTC is a native Solana and a native Ethereum token, fully backed 1:1 by Bitcoin reserves held in cold storage and institutional custody. Timely updates on the status of those BTC reserves are delivered onchain via Chainlink Proof of Reserve, giving users greater visibility and stronger assurances that 21BTC is fully collateralized. Ultimately, this makes Bitcoin, the largest digital asset by market cap and proven store of value with deep liquidity, more easily and securely accessible across the Solana and Ethereum ecosystems.
Fintech News: Abra Partners With Praxis to Enable Tokenization and DeFi for Network States.
Key benefits of Chainlink Proof of Reserve include:
- Programmatic Utility — By bringing reserve data onchain, protocols can build automated logic around the reserve data backing an asset thus building new use cases and features such as automated onchain risk management.
- Confidence — With secure minting, Proof of Reserve protects against malicious minting by embedding cryptographic guarantees that new tokens minted are backed by reserves, helping to prevent infinite mint attacks.
- Decentralized — As the industry-standard solution, Chainlink Proof of Reserve Feeds are decentralized at the data source and oracle node level, eliminating central points of failure in the sourcing and delivery of external data to Solana and Ethereum.
- Transparent — Chainlink Proof of Reserve Feeds can be monitored by anyone in real-time, allowing any user to independently verify asset collateralization, bringing increased transparency and trust to onchain products.
“21Shares and Chainlink have played fundamentally important roles in ensuring the adoption of a more secure blockchain infrastructure, and we’re excited to see 21Shares integrate Chainlink Proof of Reserve to support 21BTC. Proof of Reserve’s role in enabling a secure minting function is a key step to creating a reliable framework that allows for the tokenization of trillions of dollars in value.”— Johann Eid.
“The industry-standard Chainlink Proof of Reserve is critical for providing transparency into the reserves backing 21BTC, helping to secure its minting function and supporting its widespread adoption across the Solana and Ethereum ecosystems. By securing the minting function and providing timely and reliable monitoring of reserves, Proof of Reserve gives users greater assurances that 21BTC is fully backed by BTC 1:1.”— Eliezer Ndinga.
Fintech News: ReadyCorp Offers Consultations for the Argentinian Crypto Market.
To share your insights with the FinTech Newsroom, please write to us at news@intentamplify.com
