- 21.co integrates Chainlink Proof of Reserve.
- Verification works on both Solana and Ethereum.
- Chainlink provides real-time holdings verification.
Transparency is everything in the crypto world. This is especially true for assets that have a physical or digital backing, including stablecoins and wrapped cryptocurrencies. The value of these assets depends on the underlying underlying, so it is important to ensure that there are sufficient reserves.
Recently, 21Shares’ parent company, 21.co, took a major step to strengthen trust with its users: they integrated Chainlink’s Proof of Reserves into Wrapped Bitcoin (21BTC) on the Solana and Ethereum blockchains.
Chainlink Margin for 21BTC on Solana and Ethereum
Wrapped Bitcoin just got a lot more transparent. On Monday, September 23, 21.co integrated Chainlink’s Proof of Reserve for both Solana and Ethereum. This integration allows users to verify in real time that their Wrapped Bitcoin tokens (21BTC) are fully backed 1:1 by the Bitcoin reserves held in cold storage.
The system uses Chainlink’s decentralized oracle network to bring off-chain data on-chain. The Proof of Reserve mechanism is automated and continuously monitors the reserve. This eliminates the risk of 21. co minting unsupported wrapped bitcoin.
Wrapping up Bitcoin’s utility across blockchains
This development comes after 21.co’s Wrapped Bitcoin (21BTC) launched on Solana in May and expanded to Ethereum in September. The goal is to enhance the utility and liquidity of Bitcoin across multiple chains.
BTC holders often have difficulty interacting with DeFi due to the inherent limitations of the Bitcoin blockchain. Wrapped Bitcoin solves this problem by enabling Bitcoin transactions and staking on other blockchains, while the asset maintains a 1:1 backing with Bitcoin reserves.
On the other side
- Coinbase also recently announced expansion. Coinbase Wrapping Bitcoin From (cbBTC) to Solana.
- Tether, the world’s largest stablecoin issuer, continues to face criticism for the following reasons: Lack of transparency With reserves.
Why this matters
Chainlink Proof of Reputation (PoR) for 21BTC is an important step towards improving transparency and trust in the wrapped asset space.
Learn more about the importance of reserves:
Is Tether’s $119 Billion Market Cap Risky? What You Need to Know
Learn more about Solana’s ecosystem expansion.
Solana Strengthens DeFi with Coinbase cbBTC and Marinade V2