21Shares Launches Wrapped Bitcoin on Ethereum Network to Expand Market Reach
21.co, the parent company of 21Shares, has recently unveiled a fresh wrapped bitcoin token called 21BTC on the Ethereum blockchain, following the prior introduction of 21BTC on the Solana blockchain. The objective behind the new Ethereum-based 21BTC is to provide users with a secure and institutionally supported alternative to existing wrapped bitcoin offerings like Wrapped Bitcoin (WBTC).
This launch comes at a pivotal moment as WBTC has encountered scrutiny and a decline in trust after adjustments in its custodial arrangements by BitGo. The participation of controversial figures such as TRON’s Justin Sun in the updated custody setup has triggered a notable surge in WBTC redemptions, indicating a waning confidence among investors. This uncertain backdrop creates an opening for 21.co to position 21BTC as a more dependable and secure choice.
Eliezer Ndinga, Head of Strategy and Business Development, Digital Assets at 21.co, emphasized the company’s commitment to stringent asset management practices and operational excellence in the realm of wrapped assets. They engage institutional-grade custodians and security protocols to ensure top-notch security for their offerings.
However, 21.co is not the only player in this arena. Several alternatives to WBTC already exist, including tBTC, renBTC, and dlcBTC. Even Coinbase hinted at the launch of a wrapped bitcoin product. On a different note, 21.co’s wrapped bitcoin on Solana has not gained significant traction, with a current supply of just 13.5 BTC, valued at approximately $800,000 based on current prices.
21.co’s 21BTC is meticulously crafted with enhanced security protocols, employing cold storage for the underlying assets and steering clear of more susceptible “lock-and-mint” methods. The company has collaborated with Flow Traders, a market maker, to ensure liquidity and market stability for the new token. Additionally, the mint and burn process is overseen by 21.co’s Onyx OS.
The timing of 21BTC’s debut indicates 21.co’s strategic move to tap into the escalating demand for alternatives to WBTC, especially with the notable DeFi platform MakerDAO (now rebranded as Sky) passing a vote to halt future borrows against wrapped bitcoin.
In response to concerns regarding the latest WBTC custodial modifications, Lending Protocol Aave is contemplating onboarding TBTC. This move reflects the evolving landscape of wrapped bitcoin offerings and the increasing emphasis on security and reliability in the crypto space.
