- 21.co integrates Chainlink Proof of Reserve.
- Verification works both for Solana and Ethereum.
- Chainlink provides real-time reserve verification.
In the world of crypto, transparency is everything. This is especially true for assets with either physical or digital backing, including stablecoins and wrapped crypto. As the value of these assets depends on the underlying backing, ensuring that there are enough reserves is key.
Recently, 21.co, the parent company of 21Shares, took a significant step to enhance trust. They’ve integrated Chainlink’s Proof of Reserves into their Wrapped Bitcoin (21BTC) on both Solana and Ethereum blockchains.
Chainlink Proof of Reserve for 21BTC on Solana and Ethereum
Wrapped Bitcoin just became much more transparent. On Monday, September 23, 21.co integrated Chainlink’s Proof of Reserve for both Solana and Ethereum. The integration enables users to verify in real-time that the Wrapped Bitcoin tokens (21BTC) are fully backed 1:1 by Bitcoin reserves held in cold storage.
The system works by using Chainlink’s decentralized oracle network, which brings off-chain data on-chain. The Proof of Reserve mechanism is automated, and it continuously monitors the reserves. This eliminates the risk that 21. co is minting un-backed Wrapped Bitcoin.
Wrapped Bitcoin’s Utility Across Blockchains
The launch comes after 21.co’s Wrapped Bitcoin (21BTC) launched on Solana in May and expanded to Ethereum in September. Its goal is to enhance Bitcoin’s utility and liquidity across different chains.
BTC holders often have a difficult time interacting with DeFi due to the inherent limitations of the Bitcoin blockchain. Wrapped Bitcoin solves this problem by enabling Bitcoin trading and staking on other blockchains. At the same time, the assets maintain a 1:1 backing with Bitcoin reserves.
On the Flipside
- Recently, Coinbase also announced expanding its Coinbase Wrapped Bitcoin (cbBTC) to Solana.
- The world’s biggest stablecoin issuer, Tether, faces ongoing criticism for the perceived lack of transparency with its reserves.
Why This Matters
Chainlink Proof of Reserve for 21BTC is a significant step toward improving transparency and trust in the world of wrapped assets.
Read more about the importance of reserves:
Is Tether’s $119B Market Cap a Risk? What You Need to Know
Read more about Solana’s ecosystem expansions:
Solana Strengthens DeFi with Coinbase cbBTC and Marinade V2
