21.co Takes Action for Wrapped Tokens

21.co, the parent company of 21Shares, a provider of crypto exchange trading products, has launched a series of Wrapped Tokens to support the development of DeFi.

21.co, the parent company of 21Shares, a provider of crypto exchange trading products, has entered the Wrapped tokens space to help drive decentralized finance (DeFi) adoption. 21.co announced on Tuesday that it has launched eight Wrapped tokens, including ones for Bitcoin, BNB, XRP, cardano and others. Like 21.co’s other products, its wrapped tokens are built on its proprietary operating system, Onyx.

Wrapped tokens are digital assets that represent the full value of an original cryptocurrency from a different blockchain. These allow assets like Bitcoin to run on Ethereum and be used in decentralized finance (DeFi) applications. This increases cross-blockchain liquidity and expands the use of crypto assets. When asked why Wrapped tokens were launched in the current bear market, 21.co’s head of product Krishnan Nair stated that it was to build in the bear market.

While macro conditions are challenging, our goal is to help elevate the entire crypto ecosystem. We have been in the business of bridging traditional finance and crypto for years. By combining Wrapped tokens DeFi and CeFi, we bring similar operating efficiency to deliver to the DeFi community.

Index Coop, a collective offering crypto indices, will launch a new index powered by 21.co’s Wrapped tokens. Named the Index Coop Large Cap Index (IC21), the index will provide access to an IC21 token and a series of 21.co Wrapped tokens. Specifically, this token will provide access to non-Ethereum Virtual Machine (EVM) blockchain tokens on the Ethereum network. According to Index Coop, the IC21 token could be a good option for those allocating to crypto for the first time. Index Coop said in a product offering published last month:

As the crypto market matures, we think more assets like BTC and ETH are likely to maintain their value and longevity, creating continued demand and providing an outlet for the evergreen large-cap product.