2 hours ago
21.co, the genitor institution of plus absorption steadfast 21Shares, has integrated Chainlink Proof of Reserve connected the Ethereum and Solana mainnet to bolster transparency of its wrapped Bitcoin product, 21BTC, according to a Sept. 23 statement.
The institution volition usage Chainlink’s Proof of Reserve done its integer plus platform, Onyx, to automate real-time reserve verification to guarantee unafraid minting of 21BTC.
The steadfast said the integration volition straight effect successful decentralized oversight and transparency, which volition payment users and summation assurance successful the token. Users volition beryllium capable to independently verify plus collateralization successful existent time.
21BTC was archetypal launched connected Solana successful May and aboriginal connected Ethereum successful September. It is simply a afloat backed token with 1:1 Bitcoin reserves held successful acold storage.
Johann Eid, Chief Business Officer astatine Chainlink Labs, said:
“Proof of Reserve’s relation successful enabling a unafraid minting relation is simply a cardinal measurement to creating a reliable model that allows for the tokenization of trillions of dollars successful value.”
Coinbase rival’s challenges
While 21.co has focused connected improving transparency for 21BTC, Coinbase’s wrapped Bitcoin (cbBTC) continues to look scrutiny.
On Sept. 23, 0xngmi, the laminitis of DeFillama, criticized Coinbase’s cbBTC’s deficiency of transparency. He said:
“Almost each azygous span (including WBTC) provides a Proof of Reserves truthful you tin cheque that the issued coins are backed. But Coinbase doesn’t, cbBTC is mode beneath the modular successful presumption of transparency.”
This comes arsenic Coinbase’s Chief Legal Officer, Paul Grewal, besides had to code concerns astir cbBTC’s presumption of service. Some X users had raised alarms that the speech whitethorn not afloat reimburse mislaid Bitcoin successful cases of malicious enactment oregon unforeseen events.
However, Grewal clarified that Coinbase’s liability lone covers the Bitcoin lost. It does not widen to losses from trades oregon leveraged positions. He stated:
“It’s a regulation connected liability that’s beauteous basic: we aren’t liable for much than the BTC we lose. This connection besides makes wide the custodial relationship.”
Despite these concerns, cbBTC has gained traction, with astir 3,000 tokens circulating wrong 2 weeks of its launch. It has rapidly go the third-largest wrapped Bitcoin token, with a marketplace capitalization of astir $170 cardinal and a trading measurement that has surpassed $1 cardinal successful the past 24 hours, according to Dune Analytics data.
The station 21.co integrates Chainlink to heighten 21BTC transparency via real-time Proof-of-Reserves appeared archetypal connected CryptoSlate.
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