On Wednesday, asset management firms Ark Invest and 21Shares unveiled their joint effort to bolster transparency in the ARK 21Shares Bitcoin ETF (ARKB). Their collaboration involves integrating Chainlink’s Proof of Reserve platform to authenticate holdings data. This integration seeks to furnish investors with immediate and verifiable access to the ETF’s holdings.
Ark Invest and 21Shares Collaborate to Bolster Transparency and Security in ARK 21Shares Bitcoin ETF with Chainlink Integration
Ark Invest and 21Shares have joined forces to implement Chainlink’s technology into their ARK 21Shares Bitcoin ETF (ARKB), aiming to fortify transparency and security for investors. This integration, announced recently, underscores the commitment of both firms to provide investors with real-time access to verified data regarding the ETF’s holdings. By leveraging Chainlink’s Proof of Reserve platform, the collaboration seeks to offer investors greater confidence in the accuracy and security of ARKB’s underlying assets. This move is expected to enhance trust and transparency within the ETF market, addressing concerns about data integrity and bolstering investor confidence in the rapidly evolving landscape of digital asset investments.
Crypto ETF issuer @21shares_us has integrated #Chainlink Proof of Reserve on @ethereum to increase the transparency of ARK 21Shares Bitcoin ETF’s (ARKB) reserves with @ARKInvest.
Explore how PoR provides transparency for both onchain and offchain assets: https://t.co/uauB02irKm
— Chainlink (@chainlink) February 28, 2024
21Shares co-founder and president, Ophelia Snyder, emphasized the importance of this partnership, noting that it enables an unparalleled level of transparency and security for investors’ holdings in ARKB.
“By integrating Chainlink, the industry leader in Proof of Reserves for tokenized assets, we’re setting a new standard for combining transparency and security in digital asset management.”
21Shares maintains a harmonious blend of security and transparency throughout its operations. By incorporating Chainlink’s Proof of Reserve solution, 21Shares offers comprehensive visibility into ARKB’s Bitcoin reserves.
Improved security measures such as segregated wallets, multi-sig protocols, and cold storage ensure both transparency and security, preserving asset integrity and fostering investor confidence.
Investors in ARKB can now validate that Bitcoin holdings fully support the ETF, as the underlying Bitcoin reserve and its history are publicly accessible via Chainlink Proof of Reserve (PoR).
This off-chain reserves feed, sourced directly from Coinbase, facilitates on-chain reporting of reserve data through Chainlink oracles.
The advantages of Proof of Reserve include automated on-chain verification, decentralized delivery of external data to blockchains, and transparent monitoring by anyone in near real-time.
This partnership establishes a new benchmark for transparency and security in digital asset management, reinforcing 21Shares’ dedication to pioneering secure and transparent asset management practices.
Chainlink’s Proof of Reserve Integration Boosts Transparency for ARKB Bitcoin ETF
The integration of Chainlink’s Proof of Reserve marks a significant milestone in enhancing transparency for the ARKB Bitcoin ETF. By leveraging Chainlink’s innovative technology, ARKB investors gain unprecedented visibility into the ETF’s underlying Bitcoin reserves. This integration ensures that investors can verify the full backing of Bitcoin holdings, providing them with assurance and confidence in the ETF’s asset integrity.
Chainlink’s Proof of Reserve solution enables real-time access to the Bitcoin reserve and its historical data, offering investors a comprehensive view of the ETF’s holdings. This transparency is crucial in today’s digital asset landscape, where trust and credibility are paramount for investors.
Moreover, Chainlink’s integration allows for seamless on-chain reporting of reserve data through its decentralized oracles. This ensures that the reserve data is securely and transparently transmitted to the blockchain, enabling automated verification and transparent monitoring by stakeholders in near real-time.
Overall, the integration of Chainlink’s Proof of Reserve not only bolsters transparency for the ARKB Bitcoin ETF but also sets a new standard for transparency and accountability in digital asset management. It underscores 21Shares’ commitment to providing investors with secure and transparent investment opportunities while reinforcing trust in the rapidly evolving landscape of digital assets.
