TL;DR
- 21Shares launches 21BTC, a new version of Wrapped Bitcoin on Ethereum, addressing the security issues of the current leader WBTC.
- 21BTC stands out for storing Bitcoin in cold storage without the need for bridges, eliminating risks and offering greater protection to users.
- The introduction of 21BTC also enhances interoperability between blockchains, facilitating integration into the DeFi ecosystem and boosting financial activities.
21Shares has launched 21BTC, a new version of Wrapped Bitcoin on the Ethereum blockchain. The launch comes at a crucial time for the BTC market, which has faced several challenges and controversies surrounding the current leading product, WBTC.
The new 21BTC is distinguished by its focus on security, as the underlying BTC is stored in cold storage and does not require bridges for transfer. This method eliminates the risks associated with using crypto bridges and promises greater protection for users’ assets.
21Shares’ decision to adopt a more secure approach is a direct response to the issues faced by WBTC, which has been under scrutiny and investigation due to complications with BitGo and controversies related to TRON founder Justin Sun. These problems have led to a reduction in WBTC supply and a decrease in market demand, exacerbated by MakerDAO’s recent decision to stop allowing loans against WBTC.
21Shares Aims to Challenge WBTC’s Leadership
21Shares, known for its strong reputation in managing cryptocurrency-based financial products, has partnered with Flow Traders, one of the largest global market makers, to launch 21BTC on Ethereum. The company promises that this new asset will benefit from advanced security protocols and institutional-grade custodians, ensuring a high level of protection for investors.
The launch of 21BTC offers a more secure alternative to WBTC. Another strength is its ability to address the issue of interoperability between blockchains. By allowing Bitcoin to be compatible with Ethereum, 21BTC facilitates greater integration into the DeFi ecosystem. It is a crucial advancement for improving liquidity and interoperability across various blockchain networks, potentially boosting a wider range of financial activities such as lending and trading.
Additionally, 21.co, the parent company of 21Shares, features the Onyx platform, which has handled over $6.7 billion in crypto-backed products. Onyx facilitates interaction between market participants and provides more efficient time and cost management, bridging traditional and decentralized finance.
