21.co Launches Wrapped Bitcoin on Ethereum Amid WBTC Controversy

21.co, the mother or father firm of 21Shares, a serious participant within the crypto exchange-traded fund (ETF) market, is increasing its presence on this planet of wrapped property.

21.co, the mother or father  firm of 21Shares, a serious participant within the crypto exchange-traded fund (ETF) market, is increasing its presence on this planet of wrapped property with the launch of its personal Bitcoin wrapper, 21.co Wrapped Bitcoin (21BTC), on the Ethereum blockchain.

The announcement, made on September 3, marks the newest addition to 21.co’s rising suite of wrapped tokens, which already contains property like Avalanche (AVAX), Polkadot (DOT), and Solana (SOL) on Ethereum. Earlier this 12 months, 21.co launched 21BTC on the Solana community.

The brand new Bitcoin wrapper is designed to convey institutional-grade asset administration practices to the wrapped asset area. In line with Eliézer Ndinga, 21.co’s head of technique and enterprise improvement for digital property, 21BTC incorporates “stringent asset administration finest practices,” together with the usage of institutional-grade custodians and sturdy safety protocols.

To make sure person safety, 21.co has applied chilly storage options and partnered with regulated third-party custodians. The corporate can be collaborating with market maker Circulation Dealer to deal with the issuance of 21BTC. Wrapped Bitcoin tokens like 21BTC are ERC-20 tokens (or different good contract-compatible tokens) which can be absolutely backed by Bitcoin, permitting them for use inside the Ethereum ecosystem for varied decentralized finance (DeFi) actions.

The launch of 21BTC comes at a time when the main Bitcoin wrapper, Wrapped Bitcoin (wBTC), is going through scrutiny over its custodian BitGo’s proposed partnership with the Hong Kong-based crypto trade BiT World. This partnership would grant BiT World partial custody of the Bitcoin backing wBTC, a transfer that has sparked concern inside the crypto group. Wrapped Bitcoin is at the moment the most well-liked Bitcoin wrapper, boasting a market capitalization of practically $8.7 billion, in line with L3B7.

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