The post Chainlink Proof of Reserve Secures 21.co’s Wrapped Bitcoin on Solana & Ethereum appeared on BitcoinEthereumNews.com.

Chainlink’s Proof of Reserve integration ensures real-time transparency and security for 21.co’s Wrapped Bitcoin (21BTC) on Solana and Ethereum. By avoiding bridges and using cold storage, 21BTC sets a new standard for tokenized assets, ensuring 1:1 Bitcoin collateralization. By integrating Chainlink’s Proof of Reserve on both Solana and Ethereum, 21.co has enhanced transparency for its Wrapped Bitcoin product, 21BTC. As CNF reported earlier, Chainlink (LINK) and Bitcoin (BTC) tumbled as analysts tipped Clandeno (CLD) for a 100X rally. Launched on Solana in May 2024, with expansion to Ethereum in collaboration with Flow Traders, 21BTC offers users peace of mind while engaging with decentralized applications. As the parent company of 21Shares, 21.co utilizes this system to enable real-time verification, ensuring that every 21BTC token is fully collateralized 1:1 by Bitcoin held securely in cold storage. Unlike traditional “lock-and-mint” methods, which can be vulnerable, 21BTC uses cold storage and institutional-grade third-party custodians to protect assets. By avoiding the need for bridges, the system provides an extra layer of security. Chainlink’s decentralized infrastructure, managing over $15 trillion in transaction value, was chosen for its ease of integration and reliability. Enhanced Transparency and Security for 21BTC In another report by CNF, the role of Chainlink integration included spot Bitcoin ETFs embracing transparency. The integration with Chainlink ensures that token minting only occurs when sufficient Bitcoin reserves are available, preventing over-minting and allowing users to monitor reserves in real time. This enhances trust and confidence in the system. Eli Ndinga, Head of Strategy at 21.co, emphasized the importance of Proof of Reserve in providing transparency, noting that this same technology is used in their spot Bitcoin ETFs. Ndinga also highlighted that the partnership with Chainlink sets a new standard for tokenized products like 21BTC. According to CoinMarketCap data today, Chainlink (LINK) is trading at $11.46,…

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Filed under: News - @ September 24, 2024 1:22 pm