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 2, 2024

Avalanche Foundation Launches $40M Retro9000 Grant Program for L1 Developers

Binance Labs’ Recent Investment: What is OpenEden?

Bitcoin Drops Amid Escalating Middle East Tensions: Investors Seek Safe Havens

BingX Exchange Hit by $26M Crypto Theft: Report

Degen Trump (DEGTRUMP) Solana Memecoin to Surge 19,000% Ahead of Exchange Listing, As Shiba Inu a...

Crypto Startups Survive Bear Market: 80% Still Active in 2024

Join our free newsletter for daily crypto updates!