In a recent move, the asset managers behind the ARK Bitcoin ETF (ARKB), 21Shares and Ark Investment, announced a partnership with the decentralized oracle network Chainlink to set a “new standard” for transparency and security in the world of cryptocurrencies. Symbolic assets.
Chainlink to Prove ARKB Bitcoin ETF Reserves Through PoR
like Advertise On Monday, the driver behind the integration was the adoption of Chainlink’s Proof of Reserve (PoR) solution, which is said to provide a secure and transparent way to verify the underlying Bitcoin reserves that back the ARKB ETF.
Asset managers, in partnership with Chainlink, announced that by directly leveraging Coinbase Data feedChainlink’s PoR can automatically update the on-chain reference contract with the total value of ARKB’s Bitcoin holdings. “It’s a great way to do this,” said Johan Eid, CBO at Chainlink Labs.
We are excited to partner with 21Shares as they help reimagine the way the world interacts with tokenized assets and expand access to the masses. By providing real-time, tamper-resistant data on Bitcoin reserves, Chainlink Proof of Reserve not only enhances the security and transparency of the ARK 21Shares Bitcoin ETF, but also enables institutions and market participants to feel confident in actively participating in on-chain finance.
“Enhancing transparency and security”
The benefits of this integration were further detailed in the announcement, starting with the fact that investors in the ARKB ETF will be able to access “frequent updates” on the underlying asset collateral. Bitcoin Holdingseliminating the need for manual verification.
Second, the Chainlink oracle network is expected to help ensure the reliability and resilience of Proof of Reserve data. The two parties believe that by eliminating central points of failure, the system will be able to provide reliable on-chain updates at all times, increasing the overall security of the ARKB Bitcoin ETF.
Perhaps most importantly, the transparency that Chainlink’s Proof of Reserve will bring to the ARKB Bitcoin ETF is that it will allow investors to independently verify Asset Guarantee Ophelia Snyder, Co-Founder and CEO of 21 Shares US, said:
By integrating Chainlink, the leader in proof-of-reserves for tokenized assets, we are setting a new standard for combining transparency and security in digital asset management. This collaboration allows us to provide an unparalleled level of visibility and security for our ARKB investors’ holdings, further reinforcing 21Shares’ commitment to leading the way in secure and transparent asset management.
At the time of writing, the largest cryptocurrency in the market, Bitcoin, is currently trading at $67,960, having fallen to this level in the last hour after hitting a one-month high of $70,000 in the early hours of Monday’s trading session.
Featured image by DALL-E, chart by TradingView.com
