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21.co’s Bitcoin wrapper to add Chainlink proof of reserve

The integration comes as other Bitcoin wrappers face scrutiny for custody practices. 

21.co, the parent company of cryptocurrency asset manager 21Shares, announced on Sept. 23 that it is adding Chainlink’s proof of reserve to 21BTC to address potential concerns about the Bitcoin (BTC) wrapper’s backing. 

Integrating proof of reserves into 21BTC on Ethereum and Solana “protects against malicious minting by embedding cryptographic guarantees that new tokens minted are backed by reserves,” 21.co said

The announcement follows a wave of skepticism among cryptocurrency retail investors about the safety of the underlying spot BTC backing Bitcoin wrappers including Wrapped Bitcoin (WBTC) and Coinbase Wrapped BTC (cbBTC). 

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21shares Announces Chainlink Integration for Real-Time Ethereum Reserve Verification

21shares Announces Chainlink Integration for Real-Time Ethereum Reserve Verification21shares announced it has integrated Chainlink’s Proof of Reserve on Ethereum mainnet to bolster the transparency of the 21shares Core Ethereum exchange-traded fund (ETF), also known as CETH. The crypto exchange-traded product (ETP) issuer said this integration aims to provide real-time visibility into the ethereum (ETH) reserves backing the ETF. 21shares Enhances CETH Transparency With […]

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Chainlink integration adds transparency to 21Shares Ether ETF

The integration aims to create more transparency for 21Shares’ Ether ETF, which could create more trust among investors.

21Shares has integrated Chainlink’s proof-of-reserve (PoR) system to create more transparency for its Core Ethereum exchange-traded fund (ETF).

21Shares, one of the world’s largest issuers of crypto exchange-traded products (ETPs), aims to build greater trust in its physically-backed Ether (ETH) ETF by integrating proof of reserves.

The transparency created by the new integration could further the path of digital asset adoption, according to Johann Eid, the chief business officer of Chainlink Labs, who wrote in a shared statement:

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Stablecoin Supply Plummets After Depegging Event: $7.4B Dollar-Pegged Tokens Withdrawn From Circulation

Stablecoin Supply Plummets After Depegging Event: .4B Dollar-Pegged Tokens Withdrawn From CirculationDuring the past 11 days, over 7 billion USDC stablecoins have been withdrawn from circulation, with most of the redemptions occurring following the depegging event of USDC on March 11, 2023. Furthermore, since March 6, a total of 439.48 million BUSD stablecoins have been redeemed. Stablecoin Depegging Event Triggers Billions in Redemptions The stablecoin landscape […]

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US Accounting Watchdog Issues Warning on Crypto Proof-of-Reserve Audits: Investors Urged to Exercise Caution

US Accounting Watchdog Issues Warning on Crypto Proof-of-Reserve Audits: Investors Urged to Exercise CautionAccording to a recent warning by the U.S. Public Company Accounting Oversight Board (PCAOB), crypto proof-of-reserve (POR) audits have limitations, and the board believes that investors should exercise caution when dealing with companies using POR audits. PCAOB Calls for Investor Caution and Due Diligence When Using Proof-of-Reserve Reports The U.S. accounting watchdog recently issued an […]

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TUSD Leverages Chainlink Proof of Reserve for Real-Time Verification of Stablecoin Minting

TUSD Leverages Chainlink Proof of Reserve for Real-Time Verification of Stablecoin MintingOn Wednesday, the stablecoin project Trueusd announced that it is leveraging Chainlink Proof of Reserve (POR) technology to provide real-time verification for the minting of trueusd tokens. The trueusd crypto asset has a circulating supply of over 968 million tokens and is the sixth-largest stablecoin by market capitalization. Archblock Uses Chainlink to Verify Reserves Before […]

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Be ‘very wary’ of crypto proof-of-reserve audits: SEC official

SEC’s acting chief accountant Paul Munter said that investors shouldn't place too much confidence in a company holding up a proof-of-reserves audit.

A senior official from the United States Securities and Exchange Commission has warned investors to be “very wary” about relying on a crypto company’s “proof-of-reserves.”

“We’re warning investors to be very wary of some of the claims that are being made by crypto companies,” said SEC’s acting chief accountant Paul Munter in a Dec. 22 interview with The Wall Street Journal.

A number of crypto firms have commissioned “proof-of-reserves” audits since the collapse of crypto exchange FTX, aiming to quell concerns over their own exchange’s financial soundness.

However, Munter said the results of these audits isn’t necessarily an indicator that the company is in a good financial position.

“Investors should not place too much confidence in the mere fact a company says it’s got a proof-of-reserves from an audit firm.”

He further added that these proof-of-reserve reports “lack” the sufficient information for stakeholders to determine whether the company has enough assets to meet its liabilities.

Munter also recently spoke at the Association of International Certified Professional Accountants Conference in Washington, D.C on Dec.12, where he reportedly expressed frustration about the constantly evolving structure of crypto firms.

Munter noted to WSJ that if the SEC uncovers “troublesome” fact patterns, it may refer the matter to the division of enforcement for further review.

Related: Proof-of-reserves: Can reserve audits avoid another FTX-like moment?

Earlier this month, John Reed Stark, former chief of the SEC of Internet Enforcement raised a “red flag” on Twitter over Binance’s proof-of-reserve report via Twitter on Dec. 11.

He said that Binance’s proof of reserve report didn’t address the effectiveness of internal financial controls, nor does it express an opinion or assurance conclusion nor does it vouch for the numbers.

It was revealed on Dec. 16 that French auditing firm Mazars Group, discontinued its section on its website dedicated to crypto audits.

The firm had worked with several prominent crypto exchanges including Binance, KuCoin and Crypto.com

Ben Sharon, co-founder of digital asset management firm Illumishare SRG previously told Cointelegraph on Nov. 19 that a proof-of-reserve audit is still a viable step to review the financial health of crypto exchanges, but it’s not enough by itself.

Investors have lost millions over the past twelve months with major crypto firms going bankrupt including Three Capital Arrows, Celsius and most recently cryptocurrency exchange FTX.

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Crypto Exchange OKX Launches New Proof-of-Reserves System Allowing Users To Verify Their Assets

Crypto Exchange OKX Launches New Proof-of-Reserves System Allowing Users To Verify Their Assets

Crypto exchange OKX is launching a new proof-of-reserve system that enables customers to verify their digital assets. The Seychelles-based firm says the OKX Proof of Reserves (PoR) will provide a means for users to verify that their funds are backed 1:1 by real assets. “At OKX, we hold a 1:1 reserve of all customer assets […]

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In Light of the FTX Collapse, Team Behind Chainlink (LINK) Offers a Proof of Reserve Solution

In Light of the FTX Collapse, Team Behind Chainlink (LINK) Offers a Proof of Reserve Solution

The team behind Chainlink (LINK) says the decentralized oracle network is offering a service that can address the transparency issues in the crypto industry after the recent FTX fiasco. According to Chainlink Labs, the blockchain’s Proof of Reserve Solution (PoR) is designed to prove the reserve data of projects and organizations, including exchanges, stablecoins and […]

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