21co, the parent company of 21Shares, has expanded its product offerings by launching eight wrapped tokens.
21co, the parent organization of 21Shares, a provider of crypto exchange-traded products (ETPs), has made its foray into the world of wrapped tokens. With the launch of eight different wrapped tokens, including those for Bitcoin (BTC), BNB, XRP, and Cardano (ADA), the company seems to aim to position itself as an enabler for cross-chain compatibility.
Wrapped tokens are essentially digital assets that mirror the value of crypto from other blockchains. By doing so, these tokens facilitate the interoperability of different blockchain networks, a feature crucial for expanding the utility of crypto assets.
They function as a bridge, allowing crypto like Bitcoin to be compatible with the Ethereum (ETH) network and thereby be employed in decentralized applications (defi) applications. This not only increases liquidity across chains but also opens up new possibilities for asset utilization in decentralized systems.
When questioned about the timing of the launch, especially given the current bearish sentiment surrounding the crypto market, Krishnan Nair, vice president of product at 21co, emphasized that downturns are periods for innovation and growth.
“While macro conditions have been challenging, our goal is to help elevate the crypto ecosystem as a whole,” Nair stated. The company believes that by extending their technical expertise to the defi space, they can establish a more seamless interaction between centralized finance (cefi) and decentralized platforms.