21.co, the parent company of 21Shares, has launched its Wrapped Bitcoin product, 21BTC, on the Ethereum blockchain. This significant development, announced on September 3, comes through a collaboration with Flow Traders, a leading global market maker.
According to the announcement, 21. co’s Wrapped Bitcoin (21BTC) is designed with institutional-grade security specifically for the digital asset community. The company claimed that the underlying Bitcoin assets are securely held in cold storage, thus eliminating the need for a bridge, which the conventional “lock-and-mint” methods require.
Wrapped tokens like 21BTC represent a cryptocurrency from one blockchain on another, typically backed one-to-one by the original asset. This innovation enhances liquidity and facilitates cross-chain transactions, broadening the use and interaction within the DeFi ecosystem.
Eliezer Ndinga, Head of Strategy and Business Development for Digital Assets at 21.co, emphasized the company’s commitment to applying the same rigorous asset management practices they employ with their crypto exchange-traded products to wrapped crypto assets.
“Users want to do more with their liquidity, yet they need assurances that their wrapped assets are secured with the highest standards,“
according to Ndinga. He emphasized that 21BTC on Ethereum offers customers this assurance and allows them to explore dApps, transact and interact with DeFi platforms with confidence.
Michael Lie, Global Head of Digital Assets at Flow Traders, stressed the importance of Bitcoin in DeFi and noted that 21Shares’ product
“brings enhanced liquidity and enables improved interoperability across multiple blockchain networks.“
Lie emphasized Flow Traders’ commitment to expanding investor choices and improving market accessibility. He added that the market marker would continue to develop its partnership with 21Shares and maintain its support for 21BTC as the exclusive liquidity provider.
Meanwhile, this launch of 21BTC on Ethereum follows 21.co’s earlier introduction of the product on the Solana blockchain in May. The latest move echoes the company’s growing presence in the wrapped tokens space, which it entered in early 2023.
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