In a significant move within the cryptocurrency landscape, Crypto.com has announced a strategic partnership with 21.co, the parent company of the renowned cryptocurrency asset manager 21Shares. This collaboration aims to enhance the liquidity of Bitcoin for existing customers of 21.co Wrapped Bitcoin (21BTC), expanding service offerings for both retail and institutional clients.
On October 7, Crypto.com and 21.co unveiled their partnership, focusing initially on 21BTC as part of a broader strategy to bolster 21.co’s exchange-traded products (ETPs). This collaboration is designed to leverage Crypto.com’s exceptional liquidity, enhancing the experience for customers using 21.co’s innovative financial products.
21.co, widely recognized for its subsidiary 21Shares, offers a range of cryptocurrency exchange-traded funds (ETFs), including the ARK 21Shares Bitcoin ETF and the 21Shares Core Ethereum ETF. The partnership will facilitate enhanced liquidity for clients, allowing them to invest their “idle Bitcoin to work across multiple chains,” according to company statements.
Eric Anziani, the president and COO of Crypto.com, emphasized the importance of this partnership, stating, “This partnership is a strong demonstration of how our exceptional liquidity can support the innovations of companies like 21.co and how Crypto.com is constantly aiming to better serve our existing customers.” This highlights Crypto.com’s commitment to fostering innovation in the crypto space while ensuring that clients have access to robust liquidity.
The collaboration will support the Bitcoin liquidity needs of 21.co’s clients across multiple blockchain networks, including Ethereum and Solana. A spokesperson from Crypto.com noted that the exchange currently offers some of the strongest liquidity on BTC/USD and USDT pairs, making it an attractive partner for 21.co.
In addition to high liquidity, 21.co has integrated Chainlink’s proof of reserve into its wrapped tokens, including 21BTC, to provide greater transparency for investors. This integration ensures that clients can trust the integrity of their investments, a crucial factor in the fast-evolving cryptocurrency market.
It's important to note that 21.co wrapped tokens, including 21BTC, are not available to investors in certain jurisdictions, including the United States, limiting access for some potential users.
The partnership follows the recent launch of 21BTC on the Ethereum blockchain on September 3. This development expanded 21.co’s suite of wrapped tokens, which also includes wrapped versions of Avalanche (AVAX), Polkadot (DOT), and Solana (SOL). These wrapped tokens allow for greater interoperability and flexibility in trading across different blockchain networks.
21.co emphasizes user protections through measures such as cold storage and regulated third-party custodians. The company has also partnered with market maker Flow Trader to manage the issuance of 21BTC, ensuring that operations remain efficient and secure.
Wrapped Bitcoin (WBTC) remains the most popular Bitcoin wrapper, boasting a market capitalization of over $9.5 billion, according to CoinMarketCap. The demand for such products continues to grow as investors seek innovative ways to utilize their crypto assets across various platforms.
The partnership between Crypto.com and 21.co marks a significant step in enhancing Bitcoin liquidity and expanding investment options for cryptocurrency users. As both companies continue to innovate, this collaboration stands to benefit a wide array of clients, paving the way for a more interconnected and dynamic crypto ecosystem. With strong liquidity, enhanced transparency, and user protections, the future looks promising for 21BTC and its users.
October 2024, Cryptoniteuae