21co Unwraps New Suite of Wrapped Cryptocurrencies 

21.co, the father or mother firm of crypto exchange-traded merchandise supplier 21shares, has launched a collection of wrapped tokens pegged to prime crypto property throughout a number of blockchains. The wrapped tokens are designed to extend liquidity and interoperability between completely different crypto networks.

21co Launches Wrapped Tokens for Cross-Blockchain Liquidity and Security

A wrapped cryptocurrency is a digital asset hosted on one blockchain that’s backed 1:1 by the underlying native asset from a distinct blockchain. For instance, WBTC is an Ethereum-based token absolutely backed by bitcoin held in Bitgo’s custody. Wrapped crypto property permit customers to entry and make the most of cryptocurrencies throughout completely different blockchains whereas nonetheless benefiting from the safety and liquidity of the underlying asset.

“Defi wants cross-chain interoperability to achieve success, however up till this level present options have been stricken by critical safety vulnerabilities,” stated Hany Rashwan, co-founder and CEO at 21.co. “We firmly imagine defi is the longer term, and have lengthy been dedicated to bridging conventional finance and decentralized finance with our expertise and our merchandise.”

21.co’s wrapped tokens are minted and burned via its proprietary asset administration system Onyx. The firm says all tokens are 100% bodily collateralized with property held in institutional-grade chilly storage custody. The first suite of wrapped tokens consists of BTC, BNB, XRP, ADA, SOL, LTC, DOT, and BCH.

The Index Coop would be the first to make the most of 21.co’s wrapped token know-how to launch an index fund holding property throughout completely different blockchains. The firm believes its centralized strategy to wrapping tokens supplies superior safety in comparison with present decentralized bridging protocols which have been liable to exploits.

As interoperability between blockchains will increase in significance, 21.co says that it goals to leverage its institutional expertise to supply safe options. The new wrapped tokens mark the corporate’s newest transfer to assist broaden decentralized finance and bridge conventional and crypto finance.

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