21Shares and Ark Invest Partner with Chainlink to Bring Transparency and Security to the ARKB Bitcoin ETF

In a recent move, the asset managers behind the ARK Bitcoin ETF (ARKB), 21Shares and Ark Investment, have announced a partnership with the

Asset managers behind the ARK Bitcoin ETF (NYSEARCA:ARKB) 21Shares and Ark Investment announced a partnership on Monday to integrate the decentralized oracle network Chainlink into the tokenized asset space.

The integration will see Chainlink’s Proof of Reserve (PoR) adopted to provide a secure and transparent method of verifying the underlying bitcoin holdings that back the ARKB ETF.

Together with the Chainlink network, the asset managers announced that Chainlink’s PoR will be able to automatically update the on-chain reference contract with the total value of ARKB’s bitcoin holdings, by tapping directly into Coinbase’s data feeds.

Chainlink’s PoR To Verify ARKB Bitcoin ETF Reserves

“We’re excited to collaborate with 21Shares as they help to reimagine the way that the world interacts with tokenized assets and scale accessibility to the masses,” said Johann Eid, Chief Business Officer, Chainlink Labs.

“By providing real-time, tamper-proof data on Bitcoin reserves, Chainlink Proof of Reserve is not just enhancing the security and transparency of the ARK 21Shares Bitcoin ETF, but also empowering institutions and market participants with the confidence to actively engage with on-chain finance.”

Benefitting from this integration, investors in the ARKB ETF will be able to access frequent updates on the collateralization of the underlying BTC holdings, eliminating the need for manual verification, according to the announcement.

Secondly, the reliability and resilience of the Proof of Reserve data will be aided by Chainlink’s oracle network. The parties believe that the system will be able to deliver trusted on-chain updates at all times by eliminating central points of failure, ultimately leading to increased overall security for the ARKB Bitcoin ETF.

Most notably, the transparency that Chainlink’s Proof of Reserve will bring to the ARKB Bitcoin ETF will allow investors to independently verify the asset collateralization of the ARKB ETF.

“Integrating Chainlink, the industry leader in Proof of Reserves for tokenized assets, as we set a new standard for combining transparency and security in digital asset management,” said Ophelia Snyder, Co-Founder and President of 21 Shares US.

“This collaboration allows us to offer an unmatched level of insight and safety for our investors’ holdings for ARKB, reinforcing 21Shares’ commitment to leading the way in secure, transparent asset management.”

At press time, the largest cryptocurrency in the market, bitcoin, is trading at $67,960, retreating to that level in the past hour after hitting a 1-month high of $70,000 in the early hours of Monday’s trading session.

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