21Shares has partnered with Chainlink to implement a Proof of Reserves （PoR） system, enhancing transparency and trust in its cryptocurrency ETFs. This article explores the significance of this integration and its potential impact.
Points
- 21Shares partners with Chainlink for Proof of Reserves （PoR）.
- PoR enhances transparency and trust in cryptocurrency ETFs.
- Integration follows the launch of ETH ETFs on July 23.
- Chainlink’s platform supports seamless tokenization and global adoption.
21Shares, a prominent issuer of cryptocurrency ETFs, has announced its partnership with Chainlink to implement a Proof of Reserves （PoR） system. This integration aims to enhance transparency and trust in the reserves backing 21Shares’ ETFs, particularly in the wake of the FTX collapse, which raised questions about the real reserves of exchanges.
Benefits of Proof of Reserves
The PoR system allows for instant and live verification of reserves, providing greater confidence to investors about the backing of their assets. Chainlink’s platform, known for its robust risk engine and extensive experience, plays a crucial role in supporting the seamless tokenization of assets on a global scale.
Significance of the Integration
The integration was implemented following the launch of Ethereum （ETH） ETFs on July 23. Other ETF issuers are likely to seek support from Chainlink to ensure transparency and build investor trust. This move is expected to positively impact Chainlink’s （LINK） price performance in the medium and long term, as more financial institutions adopt this technology.
解説
- Proof of Reserves （PoR）: A verification method that ensures a company holds sufficient reserves to back its issued assets, enhancing transparency and trust.
- Tokenization: The process of converting physical or digital assets into digital tokens on a blockchain, facilitating easier and more secure transactions.
- Exchange-Traded Fund （ETF）: An investment fund traded on stock exchanges, holding assets such as stocks, commodities, or cryptocurrencies.