**Chainlink’s Proof of Reserve Integration: Elevating Transparency and Security for 21.co’s Wrapped Bitcoin (21BTC) on Solana and Ethereum**
21.co’s Wrapped Bitcoin (21BTC) has set a groundbreaking precedent in the realm of tokenized assets by ensuring real-time transparency and security through the integration of Chainlink’s Proof of Reserve. By sidestepping bridges and relying on cold storage, 21BTC guarantees a 1:1 collateralization with Bitcoin.
With its launch on Solana in May 2024, and subsequent expansion to Ethereum in partnership with Flow Traders, 21BTC provides users with confidence while interacting with decentralized applications. As the parent company of 21Shares, 21.co employs this innovative system to facilitate real-time verification, ensuring that every 21BTC token is backed by an equivalent amount of Bitcoin securely held in cold storage. This approach stands in stark contrast to traditional “lock-and-mint” methods, which can be prone to risks. Instead, 21BTC partners with institutional-grade third-party custodians to safeguard its assets.
The avoidance of bridges adds an additional layer of security to the system. Chainlink’s decentralized framework, which oversees over $15 trillion in transaction value, was selected for its seamless integration and dependability.
**Reinforced Transparency and Security for 21BTC**
In a separate report from CNF, it was noted that the integration with Chainlink plays a vital role in enhancing transparency for spot Bitcoin ETFs. The collaboration ensures that token minting occurs solely when adequate Bitcoin reserves are available, thus preventing over-minting and allowing users to track reserves in real time. This fosters trust and confidence in the entire system.
Eli Ndinga, Head of Strategy at 21.co, underscored the significance of Proof of Reserve in bolstering transparency, highlighting that this technology is also utilized in their spot Bitcoin ETFs. He asserted that the partnership with Chainlink establishes a new benchmark for tokenized products like 21BTC.
As of today, data from CoinMarketCap indicates that Chainlink (LINK) is trading at $11.46, reflecting a 0.07% increase over the past day and a 7.77% rise over the week.
Chainlink has also broadened its strategic partnerships recently, contributing to favorable market conditions. Notable collaborations include the integration of Chainlink’s Proof of Reserve to secure 21.co’s Wrapped Bitcoin on Solana and Ethereum, partnerships with Fireblocks for secure stablecoin issuance, and Sony’s Soneium, which has incorporated Chainlink’s Cross-Chain Interoperability Protocol (CCIP) to promote blockchain growth across various chains.
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