- Deutsche Börse Group’s Crypto Finance Group has expanded its adoption of Chainlink’s oracle standard to publish nxtAssets’ Bitcoin Core ETP’s Proof of Reserves directly on-chain.
Chainlink (LINK) has carved its own territory in the Web3 space by solving the oracle problem inherent in blockchains. The move has elevated it as a clear market leader in its segment.
As such, it has become the choice of legacy institutions seeking to bridge the gap between traditional finance (TradFi) and decentralized infrastructure, such as Deutsche Börse Group through its Crypto Finance Group. The two major players in their respective sectors unveiled their partnership last year to integrate an oracle standard that brings programmable transparency to nxtAsset’s physically backed Exchange-Traded Products (ETPs), starting with its flagship Bitcoin (BTC) Core ETP.
NxtAssets Bitcoin Core ETP
The Bitcoin Core ETP of nextAssets just went live in July. It offers institutional investors a low-cost exposure to physically backed crypto ETPs with built-in, automated auditing capabilities.
Under the setup, the Federal Financial Supervisory Authority (BaFin)-regulated Crypto Finance serves as the custodian for the underlying BTC backing nxtAssets’ Bitcoin Core ETP. To ensure a high level of security, it also keeps the assets under cold storage.
Chainlink’s Proof of Reserve (PoR) standard independently monitors the investment product’s off-chain balance data and feeds it directly to smart contracts on the Arbitrum (ARB) network for transparency.
To date, nxtAssets’ Bitcoin Core ETP has over €1.03 million (approximately $1.2 million) in assets under management (AUM). Since its inception, the product has reflected a 1.35% increase in cumulative Net Asset Value (NAV), indicating a steady increase in investor returns aligned with Bitcoin’s underlying market trajectory.
Deutsche Börse Group’s Expansion in Chainlink adoption
On Wednesday, Chainlink announced that the Deutsche Börse Group has expanded adoption of its oracle standard. The new integration enables the company to publish Proof of Reserve data for nxtAssets’ Bitcoin Core ETP directly onchain.
The move comes in response to the rapid growth of the issuer’s ETPs in terms of institutional adoption. This is owing to their regulated and physically-backed nature, which significantly mitigates the systemic risks often associated with investing in crypto assets and asset-backed financial products.
Chainlink explained that under the upgraded model, nxtAssets issues and maintains Bitcoin ETP while Crypto Finance provides regulated custody and supplies custody-account balances. Meanwhile, the Chainlink Runtime Environment (CRE) brings verifiable reserve data onchain.
CRE is an all-in-one orchestration layer that connects smart contracts with multiple chains, off-chain data sources, and TradFi systems. It enables users and enterprises to seamlessly deploy institutional-grade smart contracts, automate compliance controls, and execute cross-chain workflows.
