Solana

Wrapped Bitcoin

Bitcoin

Chainlink

Reserve

21.co, the parent company of 21Shares, announced the integration of Chainlink Proof of Reserve on the Solana and Ethereum mainnets. This initiative aims to enhance the transparency and security of 21.co’s Wrapped Bitcoin, known as 21BTC, according to a recent press release shared with BSCN.&nbsp;
"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.” said Johann Eid, Chief Business Officer at Chainlink Labs.&nbsp;
<h2 dir="ltr" id="span-span-what-is-21btc-span-span">What Is 21BTC?</h2>
Launched in May 2024, 21BTC allows users to access Bitcoin natively on the Solana blockchain. This token creates cross-chain compatibility, reportedly enhancing liquidity and utility.&nbsp;
&nbsp;
The integration of Chainlink’s Proof of Reserve is designed to bolster this offering, ensuring that each 21BTC token is fully backed by Bitcoin reserves held in secure, cold storage.
<h2 dir="ltr" id="span-span-the-role-of-chainlink-proof-of-reserve-span-span">The Role of Chainlink Proof of Reserve</h2>
Chainlink Proof of Reserve is a component for verifying the reserves that back tokenized assets. By automating real-time reserve verification, it offers protection against malicious activities, per reports.
&nbsp;
Below are the key features of the integration:
<ul>
 <li>Real-Time Verification: The integration allows for real-time updates on the status of Bitcoin reserves. Users can independently verify that their 21BTC tokens are fully collateralized, encouraging trust and transparency in the ecosystem.</li>
 <li>Programmatic Utility: With reserve data available on-chain, developers can create automated functionalities based on this information.&nbsp;</li>
 <li>Enhanced Security: Chainlink’s architecture ensures that minting processes are protected from potential exploits. The use of cryptographic guarantees prevents unauthorized minting, thus safeguarding the integrity of the tokenized asset.</li>
 <li>Decentralized Structure: Chainlink operates as a decentralized solution, eliminating single points of failure. This characteristic is particularly beneficial for maintaining data integrity across the Solana and Ethereum networks.</li>
</ul>
With this integration, investors can mint 21BTC tokens with the assurance that each token is backed 1:1 by Bitcoin.&nbsp;
&nbsp;
This isn’t the first time 21.co has leveraged Chainlink’s capabilities. Last July, 21Shares US LLC <a href="https://bsc.news/post/chainlink-proof-of-reserve-now-backs-21-shares-core-ethereum-etf">integrated</a> Chainlink’s Proof of Reserve for its Core Ethereum ETF (CETH), providing transparency for Ethereum reserves.&nbsp;

21.co Integrates Chainlink Proof of Reserve for Enhanced Transparency in Wrapped Bitcoin

Table of Contents

BSCN

Other articles published on Oct 9, 2024

BTC price retests $62K as Bitcoin preps 'very high impact' month end

Baby Doge Coin Price Surges 17%, But Analysts Say This Meme Coin Staking Platform Might Be The Be...

Qubetics’ Groundbreaking Innovations, Ethereum’s Continued Growth, and WLFI’s Challenges on Leadi...

Research Reveals Crypto Adoption Surpasses Early Internet Usage

Analysts Forecast 2000% ROI for Qubetics: Can Ripple Overcome $125M SEC Battle and Cronos Hit $0....

RG Tech Secures Major Capital Commitment from Quantix Capital, Aims to Revolutionize Energy Techn...

Join our free newsletter for daily crypto updates!