Key Points:
- 21Shares launches 21BTC aiming to provide enhanced security with cold storage and no bridge.
- WBTC is under scrutiny due to issues with BitGo and Justin Sun, which have led to a significant drop in its supply.
- 21BTC promises robust security protocols and institutional-grade custodians, setting it apart from existing Bitcoin wrappers.
21Shares launches 21BTC (Wrapped Bitcoin) product on the Ethereum blockchain.
21BTC Launches on Ethereum Blockchain
21Shares launches 21BTC to curb market unrest and bring more security and reliability to users moving dApps and other opportunities on Ethereum. With 21BTC, the difference in the market is that the underlying Bitcoin is safely stored in cold storage, and a bridge is not required. This will provide customers with much more peace of mind, knowing their assets are covered by possible bridges.
According to the company, 21.co is one of the largest crypto ETP issuers in the world. Chief Strategy and Business Development Officer Eliezer Ndinga said, “We bring very strict asset management best practices and our operational excellence to the world of wrapped assets with institutional-grade custodians and security protocols.” That seals it because 21.co operates at a high level of asset management standards and enterprise security.
Read more: 21Shares Ethereum ETF Integrates Chainlink System to Enhance Transparency
21BTC Promises Advanced Security Features
21Shares launches 21BTC, which hits a particularly critical time for the Bitcoin wrapper market, which has its own set of problems with WBTC, the leading Bitcoin wrapper with a market capitalization of nearly $9 billion. Recently, WBTC came under scrutiny for complications that had involved BitGo, and, more recently, for several controversies involving TRON founder Justin Sun. On August 9, BitGo announced the transfer of WBTC control to a joint venture with crypto custody platform BiT Global and Sun.
In return, the lending protocol Sky, also known as MakerDAO, voted to cease new borrowing against WBTC, which drove demand downward. According to data from Dune Analytics, more than 1,000 tokens were shaved off the supply of WBTC last month, a large negative change. With 21BTC entering the scene, it hopes to overcome these setbacks and provide a safer option for wrapped Bitcoin holders.
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Source: Coincu
