21.co secures $15 trillion with Chainlink for Bitcoin-backed tokens

21.co, the parent company of 21Shares, has integrated Chainlink’s (CRYPTO:LINK) Proof of Reserve (PoR) system on Solana (CRYPTO:SOL) and Ethereum (CRYPTO:ETH).

This integration aims to ensure the 1:1 collateralisation of its Wrapped Bitcoin (CRYPTO:WBTC) product, 21BTC (CRYPTO:21BTC), with real-time verification of Bitcoin (CRYPTO:BTC) reserves.

This move enhances transparency for users by verifying that 21BTC is fully backed by Bitcoin held in cold storage.

Unlike traditional "lock-and-mint" methods, 21BTC removes the need for vulnerable bridges, which have historically posed risks in the crypto space.

The assets backing the tokens are managed by third-party custodians, offering additional security and reliability for users.

Chainlink, known for securing over $15 trillion in transaction value, was chosen for its decentralised infrastructure, which ensures secure minting and adds reliability to the overall system.

The integration prevents token issuance without adequate reserves, ensuring each token is appropriately backed and verified, thus enhancing user confidence in the product.

The system was first launched on Solana in May 2024, followed by an expansion to Ethereum, with Flow Traders serving as a market-making partner.

21BTC’s design seeks to provide users with greater confidence while engaging with decentralised applications, ensuring they are participating in a secure environment.

Eli Ndinga, 21.co’s Head of Strategy and Business Development for Digital Assets, stated, “Proof of reserves provide transparency assurances for investors to obtain real-time proof of funds held in custody. We used the same technology for our spot Bitcoin ETFs and believe this should be the standard for tokenized products such as 21BTC.”

This partnership builds on Chainlink’s September collaborations, including one with Fireblocks to secure and regulate stablecoin issuance for financial institutions globally.

At press time, the Chainlink (LINK) price was $11.48.