Saturday, September 30, 2023

21.co, the umbrella organization for 21shares, a provider of cryptocurrency exchange-traded products, has unveiled a comprehensive portfolio of wrapped tokens that are linked to leading cryptocurrencies on various blockchain platforms. The primary intent behind these wrapped tokens is to enhance liquidity and facilitate seamless interactions among disparate cryptocurrency networks.

21co Debuts Wrapped Digital Assets for Enhanced Inter-Blockchain Liquidity and Security

A wrapped cryptocurrency serves as a digital asset that resides on one particular blockchain but is collateralized in a one-to-one ratio by a native asset from another blockchain. To illustrate, WBTC is a token built on the Ethereum blockchain and is entirely collateralized by Bitcoin stored in Bitgo’s custodial services. These wrapped digital assets enable users to access and transact with cryptocurrencies on multiple blockchain ecosystems, all the while maintaining the security and liquidity features of the underlying assets.

Hany Rashwan, the Co-Founder and Chief Executive Officer of 21.co, stated, “The success of decentralized finance (DeFi) is dependent on cross-chain operability. Until now, existing frameworks have been beset by significant security concerns. We are steadfast in our conviction that DeFi represents the future, and we are dedicated to acting as a bridge between conventional finance and decentralized financial systems through our expertise and product line.”

The wrapped tokens from 21.co are created and destroyed through its specialized asset management platform, Onyx. The company assures that all the tokens are 100% backed by assets stored in cold storage facilities that meet institutional-grade security standards. The inaugural range of wrapped tokens features leading cryptocurrencies such as BTC, BNB, XRP, ADA, SOL, LTC, DOT, and BCH.

The Index Coop will be the inaugural entity to incorporate 21.co’s wrapped token technology for the purpose of initiating an index fund comprising assets from multiple blockchains. 21.co posits that its centralized methodology for token wrapping offers a higher degree of security in comparison to existing decentralized bridging systems, which have been susceptible to vulnerabilities.

As the need for interoperability among blockchains continues to gain prominence, 21.co aspires to apply its institutional expertise to offer secure, scalable solutions. The launch of this new collection of wrapped tokens signifies the company’s most recent initiative to bolster the decentralized finance sector and establish connections between traditional financial systems and the emerging cryptocurrency landscape.

We invite you to share your perspectives and insights on 21.co’s newly introduced suite of wrapped digital assets in the comments section below.

Frequently Asked Questions (FAQs) about Wrapped Digital Assets

What are wrapped tokens as mentioned in the article?

Wrapped tokens are digital assets that are hosted on one specific blockchain but are backed 1:1 by a native asset from another blockchain. These tokens aim to increase liquidity and interoperability among different blockchain networks. For example, a Wrapped Bitcoin (WBTC) resides on the Ethereum blockchain and is fully backed by Bitcoin.

Who is behind the launch of this new suite of wrapped tokens?

The new suite of wrapped tokens is introduced by 21.co, which is the parent company of 21shares, a provider of cryptocurrency exchange-traded products.

What is the primary purpose of introducing these wrapped tokens?

The primary intent behind launching these wrapped tokens is to enhance liquidity and facilitate seamless transactions among disparate cryptocurrency networks. They are designed to allow users to access and transact with different cryptocurrencies across multiple blockchains while maintaining the security and liquidity of the underlying assets.

Who will be the first to utilize 21.co’s wrapped token technology?

The Index Coop will be the first entity to incorporate 21.co’s wrapped token technology. They plan to use it for initiating an index fund comprising assets from various blockchains.

How does 21.co ensure the security of these wrapped tokens?

21.co assures that all tokens are created and destroyed through its specialized asset management platform, Onyx. The company also states that all tokens are 100% backed by assets stored in cold storage facilities that meet institutional-grade security standards.

What are the cryptocurrencies included in the first suite of wrapped tokens?

The first suite of wrapped tokens introduced by 21.co includes leading cryptocurrencies such as BTC (Bitcoin), BNB (Binance Coin), XRP (Ripple), ADA (Cardano), SOL (Solana), LTC (Litecoin), DOT (Polkadot), and BCH (Bitcoin Cash).

How does 21.co plan to contribute to the future of decentralized finance (DeFi)?

21.co aims to leverage its institutional expertise to offer secure and scalable solutions for the DeFi sector. The company is committed to bridging the gap between traditional finance and decentralized finance systems through its expertise and product offerings, including the newly launched wrapped tokens.

More about Wrapped Digital Assets

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7 comments

PaulTheTrader September 13, 2023 - 10:52 am

So Index Coop is the first in line, huh? Interesting. I’ll keep an eye on their index fund. Could be a game changer for multi-blockchain assets.

Reply
Tom_BlockchainDev September 13, 2023 - 3:43 pm

onyx seems to be the backbone here. would love to dig more into how their asset management system works, coz thats where the real magic happens!

Reply
Sara_Investor September 13, 2023 - 5:51 pm

Great article, but what about the regulations? I mean, wrapping assets is all cool and dandy, but what’s the legal framework around it?

Reply
CryptoQueen September 13, 2023 - 6:34 pm

Is it just me or does everyone else also think that this could be the future of cross-blockchain transactions? its a whole new level of interoperability.

Reply
Dave_Analyst September 13, 2023 - 8:22 pm

Solid overview. Good to see a focus on institutional-grade security. I reckon that’ll attract some serious investors. Keep up the good work 21.co.

Reply
JennyFinTech September 14, 2023 - 1:22 am

I’m seriously impressed by their focus on security. Given how many exploits we’ve seen lately in the defi space, it’s bout time someone took a more centralized approach for better security.

Reply
Mike_CryptoExpert September 14, 2023 - 3:16 am

Wow, this is big news! 21.co is really stepping up their game. Wrappin’ all these top cryptos will really open up the market. thumbs up.

Reply

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