Key Points
- 21.co integrates Chainlink Proof of Reserve for its Wrapped Bitcoin (21BTC) on both Solana and Ethereum, enhancing transparency and security through automated real-time reserve verification.
- This integration allows for secure minting of 21BTC and provides users with greater assurance that the token is fully collateralized at a 1:1 ratio with Bitcoin.
21.co Expands Cross-Chain Bitcoin Access
In a move to bolster trust and transparency in the crypto ecosystem, 21.co, the parent company of major crypto ETP issuer 21Shares, has announced the integration of Chainlink’s Proof of Reserve for its Wrapped Bitcoin (21BTC) on both Solana and Ethereum blockchains. This development, revealed on September 23, 2024, marks a significant step in 21.co’s efforts to provide secure and transparent Bitcoin access across multiple blockchain networks.
The integration of Chainlink’s industry-standard Proof of Reserve system enables automated real-time verification of the Bitcoin reserves backing 21BTC. This not only enhances the transparency of 21BTC but also secures its minting process, effectively mitigating risks such as infinite mint attacks.
Chainlink’s Role in Enhancing 21BTC Security
Chainlink’s Proof of Reserve brings several key benefits to 21BTC, including programmatic utility, increased user confidence, decentralization, and transparency. By leveraging Chainlink’s time-tested infrastructure, 21.co aims to provide users with stronger assurances that 21BTC is fully collateralized at a 1:1 ratio with Bitcoin.
Johann Eid, Chief Business Officer at Chainlink Labs, emphasized the importance of this integration, stating, “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.”
Implications for Cross-Chain Bitcoin Accessibility
This development follows 21.co’s earlier launches of 21BTC on Solana in May 2024 and on Ethereum more recently. By integrating Chainlink’s Proof of Reserve across these platforms, 21.co is reinforcing its commitment to providing secure and transparent cross-chain Bitcoin accessibility.
Eliezer Ndinga, Head of Strategy and Business Development, Digital Assets at 21.co, highlighted the significance of this move: “By securing the minting function and providing timely and reliable monitoring of reserves, Proof of Reserve gives users greater assurances that 21BTC is fully backed by BTC 1:1.”
As the crypto industry continues to evolve, initiatives like this that prioritize transparency and security are likely to play a crucial role in fostering trust and driving wider adoption of digital assets across various blockchain ecosystems.
