21Shares seeks to usher in the next phase of decentralized finance and help enable DeFi’s broader adoption.
21Shares, the world’s leading crypto ETP investing platform, has announced that its subsidiary, 21.co, is set to launch a new wrapped Bitcoin (21BTC) product on the Ethereum blockchain in collaboration with Flow Traders, one of the world’s largest market makers.
21.co Wrapped Tokens are 100% physically collateralized, with the underlying held in cold storage by institutional-grade custody and a third-party custodian.
According to the announcement, 21.co aims to drive the next chapter of decentralized finance (DeFi) and help support and foster its adoption across the financial system since entering the wrapped tokens space in 2023.
21.co’s wBTC on Ethereum Network
The announcement noted that 21.co wrapped Bitcoin is developed by institutions and for the crypto asset community with institutional security and robust mechanisms to secure user protection.
Commenting on the latest development, Eliezer Ndinga, Head of Strategy and Business Development, Digital Assets at 21.co, said:
“As one of the world’s largest issuers of crypto ETPs, we bring stringent asset management best practices and our operational excellence to the world of wrapped assets, involving institutional-grade custodians and security protocols.”
Ndinga noted that users are eager to maximize the utility of their liquidity, but they also require confidence that their wrapped assets are secured to the highest standards.
According to the report, the launch of 21BTC on Ethereum also reassures customers as they navigate decentralized applications and explore new opportunities on the smart contract-enabled layer-1 blockchain.
As part of the launch of 21BTC on Ethereum, 21.co is actively partnering with leading market maker Flow Traders.
“As a global liquidity provider, we recognize the importance to increase the access to digital assets. Through the expansion 21Shares’ BTC wrapped,” Michael Lie, Global Head of Digital Assets at Flow Traders, said.
Strengthening Various Blockchain Networks
Lie believes the overall market will strengthen, offering greater liquidity and enabling better interoperability across various blockchain networks.
The head of digital assets also added that BTC wrapped harnesses the power of Bitcoin, the leading digital asset essential in driving decentralized finance growth. It serves as a key collateral source and supports various financial activities, including lending, borrowing, and trading.
Lie expressed commitment to further developing the partnership with 21Shares, supporting BTC Wrap as the exclusive liquidity provider, and expanding investor choice through the expanded product suite.
Meanwhile, in May 2024, 21.co unveiled 21BTC on Solana, providing users with native access to Bitcoin on the Solana network. This straightforward and secure solution enhances cross-chain compatibility, liquidity, and utility.