21.co aims to provide simple access to Bitcoin on the Solana blockchain, further enabling deep liquidity on decentralized exchanges, collateral eligibility on lending applications, and institutional-grade security.
ZURICH, May 30, 2024 – 21.co, the parent company of 21Shares – one of the world’s largest issuers of crypto exchange traded products (ETPs), today 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. Having entered the wrapped tokens space in 2023, 21.co aims to usher in the next phase of decentralized finance (DeFi) and help enable DeFi’s broader adoption.
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Launched in 2020, Solana emerged as a clear solution to the outdated technology in the blockchain space.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 capitalization, Bitcoin has captured over $1tr 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,” said 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 utilize the knowledge and economies of scale we’ve gained managing crypto ETPs, and apply them to the world of tokenization 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 wrapped tokens provide unparalleled security thanks to their mechanism: 21.co avoids vulnerable “lock-and-mint” approaches in favor of storing underlying assets in cold storage with institutional-grade custodians – no bridge required. 21.co wrapped tokens are 100% collateralized 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 $6.7bn in crypto-backed assets. Onyx is utilized by authorized participants from issuance through the entire product lifecycle, generating cost efficiencies that are passed on to the end investor. In addition, Onyx allows authorized 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 decentralized finance through its ability to manage both traditional asset servicing as well as tokenization from end-to-end.
As part of the launch of 21BTC on Solana, 21.co is working exclusively with leading 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,” said 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 decentralized finance applications, which is another step towards broader adoption and efficiency of the entire asset class.”
To learn more about 21.co wrapped tokens, please visit https://21.co/tokens.
Press Contact:
Audrey Belloff, Head of Global Communications, audrey.belloff@21.co
About 21.co
21.co is the world’s leader in providing access to crypto through TradFi and DeFi. 21.co offers cryptocurrency exchange traded products (ETPs) via its 21Shares affiliate, as well as blockchain infrastructure technology. 21.co’s products are built on its proprietary operating system, Onyx, which is also distributed to third parties. The company was founded in 2018 by Hany Rashwan and Ophelia Snyder. For more information, please visit www.21.co.
Disclaimer
The information provided does not constitute a prospectus or other offering material and does not contain or constitute an offer to sell or a solicitation of any offer to buy securities or any other regulated products in any jurisdiction. 21.co Wrapped Tokens are not available in certain jurisdictions, including the United States. Some of the information published herein may contain forward-looking statements and readers are cautioned that any such forward looking statements are not guarantees of future performance, involve risks and uncertainties, and actual results may differ. Additionally, there is no guarantee as to the accuracy, completeness, timeliness or availability of the information provided and 21.co and its affiliated entities are not responsible for any errors or omissions. The information contained herein may not be considered as economic, legal, tax or other advice and viewers are cautioned not to base investment or any other decisions on the content hereof.
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