21co rolls out Wrapped Bitcoin on Ethereum blockchain

21.co is expanding its series of wrapping tokens by porting its Wrapped Bitcoin to the Ethereum blockchain.

21.co, the parent company of cryptocurrency exchange-traded products provider 21Shares, has announced the launch of Wrapped Bitcoin (21BTC) on the Ethereum blockchain.

The latest product was launched in partnership with Flow Traders, one of the world’s largest market makers, the company said in a press release dated September 3. Unlike traditional “lock and mint” methods, 21.co emphasizes that it stores the underlying assets in cold storage without the need for a bridge.

Eliezer Ndinga, head of digital assets strategy and business development at 21.co, says the launch of 21BTC on Ethereum provides clients with “peace of mind as they explore decentralized applications and new opportunities on the Ethereum blockchain,” and 21.co is making this a reality by leveraging its know-how and economies of scale in managing crypto ETPs.

Wrapped tokens are digital assets that represent a cryptocurrency on one blockchain on another. They are typically backed one-to-one by the original asset, allowing users to use the value of the original cryptocurrency across different blockchain networks, increasing liquidity and enabling cross-chain transactions.

For example, Wrapped Bitcoin (BTC) allows holders to use the cryptocurrency for decentralized finance activities within the Ethereum ecosystem.

In addition to Wrapped Bitcoin, 21.co also has a number of other wrapped tokens, including those for Binance Coin (BNB), (XRP), Avalanche (AVAX), and others. Wrapped tokens are also built on Onyx, 21.co’s proprietary digital asset lifecycle platform, which has facilitated the creation and redemption of over $6.7 billion worth of crypto-backed products.

The latest addition comes just a few months after 21.co launched 21BTC on Solana in May, giving users native access to Bitcoin on the Solana network.