**News Flash: 21.co Integrates Chainlink Proof of Reserve for 21BTC**

21.co, the parent company of 21Shares, has announced the integration of Chainlink’s proof of reserve into its 21BTC product. This move aims to address concerns about the Bitcoin (BTC) wrapper’s backing.

- **Enhanced Security**: The integration on Ethereum and Solana ensures new tokens are backed by reserves, protecting against malicious minting.

- **Automatic Audits**: Chainlink’s proof of reserve audits financial data in real-time, providing transparency to investors.

- **Market Skepticism**: This comes amid growing skepticism about the safety of BTC-backed wrappers like Wrapped Bitcoin (WBTC) and Coinbase Wrapped BTC (cbBTC).

In related news, Coinbase’s cbBTC, launched on Sept. 12, has quickly become the third-largest wrapped BTC token. However, it faces scrutiny over its BTC backing, partly due to a Sept. 16 filing by BlackRock for quicker BTC withdrawal times.

Coinbase’s Chief Legal Officer, Paul Grewal, recently dispelled rumors about the company’s commitment to reimbursing cbBTC holders in case of a cybersecurity exploit.

In the U.S., regulated custodians like Coinbase and ETF sponsors such as BlackRock adhere to strict oversight and regular third-party audits, ensuring the safety and reliability of their offerings.