21.co, the father or mother firm of asset administration agency 21Shares, has built-in Chainlink Proof of Reserves onto the Ethereum and Solana mainnets to reinforce transparency for its wrapped Bitcoin product 21BTC, in response to a Sept. 23 assertion.
The corporate will use Chainlink's Proof of Reserve via its digital asset platform Onyx to automate real-time reserve verification to make sure the safe minting of 21 BTC.
The corporate stated the mixing will immediately allow decentralized oversight and transparency, benefiting customers and rising belief within the token, permitting them to independently confirm asset-backed transactions in real-time.
21BTC was first launched on Solana in Could after which on Ethereum in September. It’s a totally backed token with a 1:1 Bitcoin reserve held in chilly storage.
Johan Eid, Chief Enterprise Officer at Chainlink Labs, stated:
“Proof of Reserves’ function in enabling safe minting performance is a essential step in constructing a reliable framework that can allow the tokenization of trillions of {dollars} of worth.”
Coinbase Rival Challenges
Whereas 21.co is targeted on bettering transparency for 21BTC, Coinbase’s wrapped bitcoin (cbBTC) continues to return below scrutiny.
On September 23, DeFillama founder 0xngmi criticized Coinbase's lack of transparency relating to cbBTC. He stated:
“Nearly all bridges (together with WBTC) supply proof of reserves that assist you to confirm that the cash issued are backed. However Coinbase doesn’t. cbBTC is approach under par when it comes to transparency.”
This comes after Coinbase Chief Authorized Officer Paul Grewal additionally needed to handle issues over cbBTC's phrases of service, with some X customers fearing the trade may not totally refund misplaced bitcoins within the occasion of malicious exercise or an unexpected occasion.
Nevertheless, Grewal clarified that Coinbase's legal responsibility solely covers misplaced bitcoin, not losses from buying and selling or leveraged positions.
“It is a very primary limitation of legal responsibility. We’re not answerable for greater than the quantity of BTC misplaced. This language additionally clarifies the custody relationship.”
Regardless of these issues, cbBTC has gained recognition, with almost 3,000 tokens in circulation inside two weeks of its launch. In accordance with knowledge from Dune Analytics, cbBTC has shortly change into the third-largest wrapped Bitcoin token, with a market cap of roughly $170 billion and buying and selling quantity of over $1 billion up to now 24 hours.
