21.co, the dad or mum firm of crypto exchange-traded merchandise (ETPs) supplier 21Shares, has entered the house of wrapped tokens to assist develop the adoption of decentralized finance (DeFi).
21.co has launched eight wrapped tokens — together with for bitcoin, BNB, XRP, cardano and others — the corporate mentioned Tuesday. Like 21. co’s different merchandise, its wrapped tokens are additionally constructed on its proprietary working system, Onyx.
Wrapped tokens are digital property that characterize the precise worth of an unique cryptocurrency from a unique blockchain. They permit cross-chain compatibility, permitting property like bitcoin to function on Ethereum and be utilized in decentralized finance (DeFi) functions. This enhances cross-chain liquidity and expands the utility of crypto property.
When requested why it’s launching wrapped tokens within the present bearish market, Krishnan Nair, vp of product at 21.co, mentioned the bear market is for constructing. “Whereas macro circumstances have been difficult, our purpose is to assist elevate the crypto ecosystem, as an entire,” Nair informed The Block. “We have now been within the enterprise of bridging conventional finance and crypto for years. We’re bringing related operational effectivity to supply wrapped tokens to the DeFi group, on this occasion, bridging DeFi and CeFi.”
Wrapped tokens index
Index Coop, a collective that gives crypto indices, will supply a brand new index powered by 21.co wrapped tokens. Referred to as Index Coop Massive Cap Index (IC21), the index will give entry to the vary of 21.co wrapped tokens with one IC21 token. Particularly, the token will present entry to various non-Ethereum Digital Machine (EVM) blockchain tokens on the Ethereum community.
The IC21 token could possibly be a superb possibility for these allocating to crypto for the primary time, in response to Index Coop. “Because the crypto market matures, we consider extra property are prone to set up their worth and longevity, just like BTC and ETH, persevering with to create demand for an evergreen large-cap product,” the collective mentioned in a product proposal late final month. “Moreover, IC21 offers an outlet for crypto customers presently allotted to the theme to simplify their long-term technique.”
