21.co Introduces Bitcoin Wrapper on Ethereum

September 04, 2024 11:08 PM AEST | By Team Kalkine Media

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21.co Introduces Bitcoin Wrapper on Ethereum — Image source: Shutterstock

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21.co, the parent company of cryptocurrency asset manager 21Shares, has announced the launch of its own Bitcoin wrapper, 21.co Wrapped Bitcoin (21BTC), on the Ethereum blockchain. This move, revealed on September 3, adds to the company's existing lineup of wrapped tokens, which includes assets like Avalanche, Polkadot, and Solana.

21BTC aims to enhance security and management practices for wrapped assets by incorporating institutional-grade custodians and security measures. Eliézer Ndinga, 21.co’s head of strategy and business development, highlighted that the wrapper will adhere to rigorous asset management standards, including cold storage and regulated third-party custodians. The company is collaborating with market maker Flow Trader to handle the issuance of 21BTC.

Wrapped tokens, such as 21BTC, are ERC-20 tokens or other smart-contract compatible tokens backed by Bitcoin. They play a crucial role in decentralized finance (DeFi) by enabling a range of financial activities, including lending, borrowing, and trading.

This announcement comes at a time when Wrapped Bitcoin (wBTC), a leading competitor, faces scrutiny over its custodian BitGo’s planned partnership with BiT Global. This partnership would allow the Hong Kong-based crypto exchange partial custody of the Bitcoin backing wBTC. The involvement of BitGo, and concerns regarding Justin Sun’s affiliated projects, has stirred controversy within the crypto community.

21.co, through its subsidiary 21Shares, is also known for its cryptocurrency exchange-traded funds (ETFs), including the ARK 21Shares Bitcoin ETF (ARKB) and the 21Shares Core {Ethereum} (ETH).

The introduction of 21BTC reflects a growing trend of enhancing the security and reliability of wrapped assets in the DeFi space, as market participants seek more robust solutions amidst ongoing industry debates and challenges.

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