21Shares, a crypto company, has introduced wrapped tokens as a means to promote the adoption of decentralized finance (DeFi). The company recently launched eight wrapped tokens, including bitcoin, BNB, XRP, cardano, and others. These tokens are built on 21Shares’ proprietary operating system, Onyx.
Enhancing Cross-Chain Liquidity
Wrapped tokens are digital assets that represent the value of an original cryptocurrency from a different blockchain. They enable cross-chain compatibility, allowing assets like bitcoin to operate on Ethereum and be used in DeFi applications. This broadens the utility and liquidity of crypto assets.
Building During a Bear Market
Despite the current bearish market conditions, 21Shares believes it is the time to build. Krishnan Nair, the company’s VP of Product, stated that their goal is to elevate the crypto ecosystem by bridging traditional finance and crypto. They aim to provide operational efficiency and wrapped tokens to the DeFi community, bridging the gap between DeFi and CeFi.
Index Coop Large Cap Index
Index Coop, a collective that offers crypto indices, will launch a new index powered by 21Shares wrapped tokens. The Index Coop Large Cap Index (IC21) will provide access to multiple non-Ethereum Virtual Machine (EVM) blockchain tokens on the Ethereum network. This index is designed to simplify the crypto allocation process for newcomers and cater to the growing demand for a diversified large-cap product in the crypto market.
Hot Take: Expanding DeFi Access with Wrapped Tokens
21Shares’ launch of wrapped tokens is a significant move towards expanding access to the world of DeFi. By enabling cross-chain compatibility and providing operational efficiency, these tokens enhance the liquidity and utility of crypto assets. Additionally, the collaboration with Index Coop to create the IC21 index demonstrates the growing demand for diversified investment options in the crypto market. As the crypto ecosystem continues to evolve, initiatives like these will play a crucial role in driving the adoption and mainstream acceptance of DeFi.
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