Key Points
- 21.co and Crypto.com have formed a strategic partnership to boost liquidity and custody solutions for 21.co’s wrapped tokens.
- The collaboration will first focus on enhancing 21.co’s wrapped Bitcoin (BTC) product.
21.co, the company behind 21Shares, has entered into a strategic partnership with Crypto.com.
The alliance aims to augment liquidity and custody solutions for 21.co’s wrapped tokens, with initial efforts focused on its wrapped Bitcoin (BTC).
Understanding Wrapped Tokens
Wrapped tokens like 21BTC offer users the ability to utilize Bitcoin on other blockchains, such as Ethereum (ETH). This is achieved by “wrapping” the original asset in a smart contract.
This method allows users to leverage Bitcoin’s value while also engaging with decentralized finance (DeFi) applications. DeFi represents a system of financial services built on blockchain technology, offering alternatives to conventional financial services without the need for intermediaries like banks.
Details of the Partnership
The partnership will enable 21.co to tap into Crypto.com’s extensive liquidity pool. This means that the exchange will assist in providing Bitcoin to back 21BTC tokens. Crypto.com will also offer competitive fees and advanced trading technology, aiding 21.co in enhancing the efficiency of its wrapped Bitcoin product.
Eliezer Ndinga, Head of Strategy at 21.co, underscored the importance of integrating 21BTC with Crypto.com, labeling it as a crucial step in improving crypto accessibility for users.
While specific details are yet to be announced, the companies plan to expand their partnership further in the future. As the demand for crypto products escalates, collaborations like this aim to streamline access and improve liquidity for both retail and institutional traders globally.
