21co Introduces Wrapped Tokens for Cross-Blockchain Liquidity and Security
A wrapped cryptocurrency refers to a digital asset that exists on one blockchain but is backed 1:1 by the native asset of another blockchain. For instance, WBTC is an Ethereum-based token fully supported by bitcoin held in Bitgo’s custody. These wrapped crypto assets enable users to access and utilize cryptocurrencies on different blockchains while enjoying the security and liquidity provided by the underlying asset.
Addressing Security Concerns
Hany Rashwan, co-founder and CEO of 21.co, emphasized the need for cross-chain interoperability in decentralized finance (defi) while acknowledging the security vulnerabilities associated with existing solutions. He believes that defi is the future and has committed to bridging traditional finance with decentralized finance through their products and expertise.
21.co’s Wrapped Tokens
21.co has developed wrapped tokens that are minted and burned using their proprietary asset management system called Onyx. These tokens are fully collateralized with assets stored in institutional-grade cold storage custody. The initial suite of wrapped tokens includes BTC, BNB, XRP, ADA, SOL, LTC, DOT, and BCH.
The Index Coop Partnership
The Index Coop will be the first to leverage 21.co’s wrapped token technology by launching an index fund that holds assets across different blockchains. By adopting a centralized approach to wrapping tokens, 21.co aims to provide enhanced security compared to existing decentralized bridging protocols that have been vulnerable to exploits.
Advancing Decentralized Finance
With the increasing importance of interoperability between blockchains, 21.co plans to utilize its institutional experience to offer secure solutions. The introduction of wrapped tokens is yet another step taken by the company to expand decentralized finance and bridge the gap between traditional and crypto finance.
Hot Take: 21.co’s Wrapped Tokens Revolutionize Cross-Blockchain Transactions
21.co’s introduction of wrapped tokens brings a new level of convenience and security to cross-blockchain transactions. By allowing users to access different cryptocurrencies while benefiting from the security and liquidity of the underlying assets, these wrapped tokens open up new possibilities in decentralized finance. With their centralized approach to token wrapping, 21.co addresses the security concerns that have plagued existing solutions. This development marks a significant milestone in bridging traditional finance with the emerging world of crypto finance. As interoperability becomes increasingly important, 21.co is at the forefront of providing secure solutions for the future of finance.
By
By
By
By