21.co, the father or mother firm of crypto exchange-traded merchandise (ETPs) supplier 21Shares, has entered the area 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 stated Tuesday. Like 21. co’s different merchandise, its wrapped tokens are additionally constructed on its proprietary working system, Onyx.
Wrapped tokens are digital belongings that characterize the precise worth of an unique cryptocurrency from a special blockchain. They permit cross-chain compatibility, permitting belongings 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 belongings.
When requested why it’s launching wrapped tokens within the present bearish market, Krishnan Nair, vp of product at 21.co, stated the bear market is for constructing. “Whereas macro circumstances have been difficult, our aim is to assist elevate the crypto ecosystem, as a complete,” Nair advised 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 neighborhood, on this occasion, bridging DeFi and CeFi.”
Wrapped tokens index
Index Coop, a collective that gives crypto indices, will provide a brand new index powered by 21.co wrapped tokens. Known as Index Coop Giant 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 plenty of non-Ethereum Digital Machine (EVM) blockchain tokens on the Ethereum community.
The IC21 token may very well be a great choice for these allocating to crypto for the primary time, based on Index Coop. “Because the crypto market matures, we consider extra belongings are prone to set up their worth and longevity, much like BTC and ETH, persevering with to create demand for an evergreen large-cap product,” the collective stated in a product proposal late final month. “Moreover, IC21 supplies an outlet for crypto customers at the moment allotted to the theme to simplify their long-term technique.”