crypto.news
21.co is expanding the lineup of wrapped tokens, bringing its Wrapped Bitcoin to the Ethereum blockchain.
21.co, the parent company of crypto exchange-traded products provider 21Shares, has announced the launch of its Wrapped Bitcoin (21BTC) on the Ethereum blockchain.
In a Sept. 3 press release, the company said the latest product is launched in partnership with Flow Traders, one of the world’s largest market makers. Unlike traditional “lock-and-mint” methods, 21.co emphasizes that it stores the underlying assets in cold storage without the need for a bridge.
Eliezer Ndinga, head of strategy and business development, digital assets at 21.co, says the launch of 21BTC on Ethereum allows customers to “have peace of mind as they explore decentralized applications and new opportunities on the Ethereum blockchain – and 21.co is utilizing our knowledge and economies of scale managing crypto ETPs to make this a reality.”
Wrapped tokens are digital assets that represent a cryptocurrency from one blockchain on another blockchain. They are typically backed one-to-one by the original asset and allow users to utilize the value of the original cryptocurrency on different blockchain networks, increasing liquidity and enabling cross-chain transactions.
For example, Wrapped Bitcoin allows (BTC) holders to use the cryptocurrency within the Ethereum ecosystem for decentralized finance activities.
In addition to Wrapped Bitcoin, 21.co also boasts a set of other wrapped tokens, including for Binance Coin (BNB), (XRP), Avalanche (AVAX), and others. Its wrapped tokens are also built on Onyx, 21.co’s proprietary digital asset lifecycle platform, which has facilitated the creation and redemption of over $6.7 billion in crypto-backed products.
The latest addition comes just a few months after in May, 21.co launched 21BTC on Solana, offering users native access to Bitcoin on the Solana network.