21.co, the parent company of 21Shares, has integrated Chainlink’s Proof of Reserve on Solana and Ethereum to increase transparency for its Wrapped Bitcoin 21BTC.
The system allows real-time verification of Bitcoin reserves backing 21BTC, ensuring that each token is fully collateralized 1:1 by Bitcoin held in cold storage.
Chainlink PoR Boosts 21BTC Transparency
In May 2024, 21.co launched 21BTC on Solana, followed by its expansion to Ethereum in collaboration with Flow Traders, one of the world’s largest market makers. According to the company, 21BTC is designed to provide users with “peace of mind” as they engage with decentralized applications.
Unlike vulnerable “lock-and-mint” methods, 21BTC relies on cold storage, removing the need for users to depend on a bridge. Institutional-grade third-party custodians manage the assets, providing enhanced protection.
Chainlink, securing over $15 trillion in transaction value, was selected for its ease of integration and decentralized infrastructure. Added to 21.co’s Onyx platform, it increases transparency and reliability for 21BTC across both networks.
Read more: Wrapped Bitcoin (WBTC): A Beginner’s Guide
The system prevents token minting unless sufficient reserves are available, ensuring each token is appropriately backed. Additionally, it allows real-time monitoring of reserves, which increases user confidence and trust in the overall system.
“Proof of reserves provide transparency assurances for investors to obtain real time proof of funds held in custody to ensure that 21BTC is 100% backed 1:1. We used the same technology for our spot Bitcoin ETFs and we truly believe that this should be the standard for tokenised products such as 21BTC. We are proud to spearhead this innovation alongside our partners at Chainlink,” 21.co Head of Strategy and Business Development, Digital Assets Eli Ndinga told BeInCrypto.
The recent partnership builds on Chainlink’s impressive strategic collaborations in September. Chainlink recently teamed up with Fireblocks to facilitate secure and regulated stablecoin issuance for financial institutions worldwide.
Read more: What Is Chainlink (LINK)?
Additionally, Sony’s Soneium integrated Chainlink’s Cross-Chain Interoperability Protocol (CCIP) as its core infrastructure to support blockchain growth across multiple chains.
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