21co Unwraps New Suite of Wrapped Cryptocurrencies 

21co Unwraps New Suite of Wrapped Cryptocurrencies 

21.co, the parent company of crypto exchange-traded products provider 21shares, has introduced a suite of wrapped tokens pegged to top crypto assets across multiple blockchains. The wrapped tokens are designed to increase liquidity and interoperability between 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 is backed 1:1 by the underlying native asset from a different blockchain. For example, WBTC is an Ethereum-based token fully backed by bitcoin held in Bitgo’s custody. Wrapped crypto assets allow users to access and utilize cryptocurrencies across different blockchains while still benefiting from the security and liquidity of the underlying asset.

“Defi needs cross-chain interoperability to be successful, but up until this point existing solutions have been plagued by serious security vulnerabilities,” said Hany Rashwan, co-founder and CEO at 21.co. “We firmly believe defi is the future, and have long been committed to bridging traditional finance and decentralized finance with our experience and our products.”

21co Unwraps New Suite of Wrapped Cryptocurrencies

21.co’s wrapped tokens are minted and burned through its proprietary asset management system Onyx. The company says all tokens are 100% physically collateralized with assets held in institutional-grade cold storage custody. The first suite of wrapped tokens includes BTC, BNB, XRP, ADA, SOL, LTC, DOT, and BCH.

The Index Coop will be the first to utilize 21.co’s wrapped token technology to launch an index fund holding assets across different blockchains. The company believes its centralized approach to wrapping tokens provides superior security compared to existing decentralized bridging protocols which have been prone to exploits.

As interoperability between blockchains increases in importance, 21.co says that it aims to leverage its institutional experience to provide secure solutions. The new wrapped tokens mark the company’s latest move to help expand decentralized finance and bridge traditional and crypto finance.

What do you think about 21.co’s new suite of wrapped tokens? Share your thoughts and opinions about this subject in the comments section below.

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