21.co Launches New Wrapped Bitcoin Token (21BTC) on Ethereum Blockchain

21.co, the parent company of 21Shares, has launched a new wrapped bitcoin token, 21BTC, on the Ethereum blockchain, following the earlier introduction of 21BTC on the Solana blockchain.

21.co, the Swiss financial technology firm and parent company of 21Shares, has announced the launch of a new wrapped bitcoin (BTC) token, 21BTC, on the Ethereum blockchain. This follows the earlier introduction of 21BTC on the Solana blockchain.

The new Ethereum-based 21BTC aims to provide users with a secure and institutionally backed alternative to existing wrapped bitcoin products, such as Wrapped Bitcoin (WBTC). 21.co claims that its product is designed with upgraded security protocols and aims to avoid more vulnerable "lock-and-mint" approaches.

The launch of 21BTC comes at a critical time, as WBTC has recently faced increasing scrutiny and declining trust due to changes in its custodial arrangements by BitGo. The involvement of controversial figures, such as TRON’s Justin Sun, in the new custody structure has led to a sharp increase in WBTC redemptions, signaling a loss of confidence among investors.

Against this backdrop of uncertainty, 21.co is attempting to position 21BTC as a more secure and reliable option.

“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,” said Eliezer Ndinga, Head of Strategy and Business Development, Digital Assets at 21.co, in a statement shared with Unchained.

However, 21.co's wrapped bitcoin on Solana has not been a success, with a current supply of just 13.5 BTC, which is worth around $800,000 at current prices. 21.co’s 21BTC is now available on decentralized exchanges, including Uniswap and SushiSwap.

According to 21.co, the underlying assets for 21BTC are held in cold storage, and the mint and burn process is managed by 21.co's Onyx OS. The company also partnered with Flow Traders, a market maker, to ensure liquidity and market stability for the new token.

The timing of 21BTC's launch is also noteworthy, as it coincides with growing demand for alternatives to WBTC. In particular, the prominent DeFi platform MakerDAO (now rebranded as Sky) passed a vote to disable future borrows against wrapped bitcoin, highlighting the need for more diverse and trusted wrapped bitcoin offerings.

The above is the detailed content of 21.co Launches New Wrapped Bitcoin Token (21BTC) on Ethereum Blockchain. For more information, please follow other related articles on the PHP Chinese website!