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21.co launches Wrapped Bitcoin (21BTC) on Solana

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21.co, the parent company of 21Shares has announced the launch of 21.co Wrapped Bitcoin (21BTC) on the Solana blockchain. 21BTC on Solana represents 21.co’s latest addition to its lineup of wrapped tokens.

21.co writes that tokens will play a crucial role in the digital transformation of capital markets, thereby making financial assets (both crypto assets and real-world assets) more efficient and accessible. However, one key problem hindering this financial revolution is incompatibility, known as interoperability in the world of crypto – as blockchains by design are not compatible with one another. For example, bitcoin is currently inoperable with smart-contract platforms like Solana, limiting users’ ability to get spot exposure to bitcoin on Solana.

Launched in 2020, 21.co writes that Solana emerged as a clear solution to the outdated technology in the blockchain space. The Solana ecosystem evolved quickly, boasting unparalleled speeds and cost efficiency, making transacting on the network essential. Meanwhile, as the original and largest cryptocurrency by market capitalisation, bitcoin has captured over USD1 trillion in idle funds.

“Users want to do more with their liquidity, like explore decentralized applications and new opportunities on networks like Solana. 21BTC on Solana provides native access to Bitcoin on Solana through a simple and secure solution that creates cross-chain compatibility, liquidity and utility,” says Eliezer Ndinga, Head of Strategy and Business Development, Digital Assets at 21.co. “As one of the world’s largest issuers of crypto ETPs, 21.co is uniquely positioned to launch wrapped tokens due to the firm’s extensive asset management experience and operational excellence. 21.co is able to utilise the knowledge and economies of scale we’ve gained managing crypto ETPs, and apply them to the world of tokenisation to ensure institutional-grade security and custody. 21BTC on Solana is the latest addition to that offering and we’re thrilled to bring this product to customers.”

21.co writes that its wrapped tokens provide unparalleled security thanks to their mechanism: 21.co avoids vulnerable “lock-and-mint” approaches in favour of storing underlying assets in cold storage with institutional-grade custodians – no bridge required. 21.co wrapped tokens are 100 per cent collateralised and the underlying assets are held by third-party, institutional-grade custodians.

Further, the firm’s suite of wrapped tokens is bolstered by Onyx, 21.co’s proprietary digital asset lifecycle platform, which has created and redeemed over USD6.7 billion in crypto-backed assets. Onyx is utilised by authorised participants from issuance through the entire product lifecycle, generating cost efficiencies that are passed on to the end investor. In addition, Onyx allows authorised participants and market makers to easily interact with the primary market. As a one-of-a-kind technology solution, Onyx truly bridges the gap between traditional finance and decentralised finance through its ability to manage both traditional asset servicing as well as tokenisation from end-to-end.

As part of the launch of 21BTC on Solana, 21.co is working exclusively with market maker Flow Traders.

“This is an exciting project to be involved in and we are delighted to be working together with 21.co and the Solana Foundation to securely launch bitcoin on the Solana blockchain,” says Michael Lie, Global Head of Digital Assets at Flow Traders. “The Solana network and its applications have seen extensive growth and adoption since 2020. Flow Traders is delighted to support this initiative and has long provided liquidity to 21.co’s affiliate 21Shares and its Solana ETP. With the introduction of 21BTC as secure wrapped bitcoin on the Solana network, users are able to make use of bitcoin in decentralised finance applications, which is another step towards broader adoption and efficiency of the entire asset class.”

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