In a significant move to enhance the security and reliability of wrapped Bitcoin tokens, 21.co, the parent company of cryptocurrency asset manager 21Shares, has announced the launch of its own Bitcoin wrapper on the Ethereum blockchain. The new token, dubbed 21.co Wrapped Bitcoin (21BTC), aims to bring institutional-grade security protocols and stringent asset management practices to the world of wrapped assets.
The introduction of 21BTC expands 21.co’s existing suite of wrapped tokens on Ethereum, which already includes wrapped versions of Avalanche, Polkadot, and Solana. This launch follows the company’s earlier deployment of a similar product on the Solana blockchain in May. By partnering with market maker Flow Trader to manage the issuance of 21BTC, 21.co is setting a new standard for user protection in the crypto space.
21.co’s emphasis on security is particularly timely, given the recent controversies surrounding other Bitcoin wrappers. The company’s approach, which includes cold storage and regulated third-party custodians, stands in contrast to the backlash faced by Wrapped Bitcoin (wBTC) over its custodian BitGo’s planned partnership with BiT Global. As the DeFi ecosystem continues to evolve, 21BTC positions itself as a secure and reliable option for users looking to leverage Bitcoin’s value across different blockchain networks.
The launch of 21BTC not only strengthens 21.co’s position in the cryptocurrency market but also provides new opportunities for financial activities such as lending, borrowing, and trading. With improved interoperability and enhanced liquidity, 21BTC has the potential to become a critical component in the broader blockchain ecosystem, facilitating seamless transactions and fostering innovation in decentralized finance.
