21Shares Launches Wrapped Bitcoin on the Ethereum Mainnet

21.co, the parent company of crypto exchange-traded product provider 21Shares, has launched its Wrapped Bitcoin product (21BTC) on the Ethereum mainnet.

For context, Wrapped Bitcoin is a converted version of bitcoin that can be used on Ethereum’s growing network of decentralized applications, thereby increasing liquidity and enabling cross-chain transactions.

21.co Unveils Ethereum-based Wrapped Bitcoin

In a recent press release, the company disclosed that the latest product was launched in partnership with Flow Traders, one of the world’s largest market makers.

Unlike traditional “lock-and-mint” methods, 21.co highlights that it securely stores the underlying assets in cold storage, eliminating the need for a bridge.

Furthermore, Eliezer Ndinga, the firm’s head of strategy and business development, stated that the launch of this product will provide customers with peace of mind as they explore decentralized applications and new opportunities on the Ethereum blockchain.

“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. Users want to do more with their liquidity, yet at the same time they need assurances that their wrapped assets have the highest levels of safety,” he said.

In addition to Wrapped Bitcoin, the company also boasts a set of other wrapped tokens, including Binance Coin, Avalanche, and others.

Earlier this year, 21.co launched 21BTC on Solana, which provides users with native access to Bitcoin on the Solana network via a simple and secure solution that ensures cross-chain compatibility, liquidity, and utility.

Popular Wrapper Bitcoin Faces Challenges

Meanwhile, the launch of 21BTC coincides with challenges faced by WBTC, the most popular wrapped Bitcoin with a market capitalization of approximately $9 billion.

Over the past month, WBTC has been under increased scrutiny due to issues involving BitGo and Tron founder Justin Sun. BitGo announced plans to transfer control of WBTC to a joint venture that includes itself, Hong Kong-based investment manager BiT Global, and Sun’s Tron ecosystem.

The decision stirred significant backlash within the crypto community, with concerns primarily focused on Sun’s involvement. However, BitGo CEO Mike Belshe responded that the security protocols underlying WBTC would remain unchanged despite the new joint venture.