21.co Enhances Wrapped Bitcoin Transparency with Chainlink Proof-of-Reserve

21.co, the parent company of the crypto exchange-traded products issuer 21Shares, has integrated Chainlink Proof-of-Reserve to boost the transparency of its wrapped Bitcoin, 21BTC. This strategic move aims to provide greater transparency and security for users.

Integration Details

According to a recent announcement on September 23, 21.co will leverage Chainlink’s Proof-of-Reserve service on both the Solana and Ethereum mainnets. This integration is designed to enhance reserves transparency for 21BTC, ensuring users can easily verify the backing of the token.

Launch and Functionality

21BTC was launched on Solana in May 2024 and on Ethereum in early September 2024. The token is backed 1:1 by BTC reserves, securely held in cold storage and institutional custody. Chainlink’s service will broadcast these reserves on-chain, allowing users to verify them in real-time.

21.co plans to utilize the Proof-of-Reserve via Onyx, the company’s digital asset management platform. This collaboration will facilitate real-time verification of 21BTC reserves, bolstering user and asset security during the minting process.

Expert Commentary

In a recent comment, Chainlink Labs Chief Business Officer Johann Eid emphasized that secure minting is a crucial step toward the growth of tokenization. This partnership not only enhances transparency but also strengthens the overall decentralization of 21BTC on both the Ethereum and Solana blockchains.

“Secure minting is a step toward further growth in tokenization.”

Industry Impact

This integration aligns with the cryptocurrency industry’s broader push for a decentralized ecosystem, focusing on areas such as real-world assets, decentralized finance, global trade, and gaming. By leveraging Chainlink’s technology, 21.co is setting a new standard for transparency and trust in the crypto space.

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