21.co collaborates with Crypto.com to enhance liquidity for its wrapped Bitcoin (21BTC) using Crypto.com’s extensive liquidity pool.
Crypto.com provides competitive fees and an advanced matching engine, improving the efficiency and reliability of 21.co’s wrapped Bitcoin offerings.
The partnership aims to expand to wrapped tokens like 21SOL and 21BNB, while maintaining restrictions on minting in the U.S. due to regulations.
21.co, the parent company of 21Shares, has entered into a strategic partnership with Crypto.com to advance liquidity and custody solutions for its range of wrapped tokens, commencing with wrapped Bitcoin (21BTC). This collaboration is set to leverage Crypto.com’s extensive liquidity pool, ensuring robust backing for 21BTC tokens. Additionally, Crypto.com will provide competitive fee structures and advanced trading technologies, which are expected to enhance the efficiency and reliability of 21.co’s wrapped Bitcoin offerings.
https://twitter.com/cryptocom/status/1843196521132838942
Eliezer Ndinga, Head of Strategy and Business Development at 21.co, highlighted the significance of the integration, stating that Crypto.com, a global digital asset exchange with over 100 million users, and 21.co, a leading issuer of crypto ETPs, bring asset management best practices and operational excellence. This partnership significantly improves crypto accessibility and operational performance for 21.co’s products.
Enhancing DeFi Interactions with Wrapped Bitcoin
Tokens like 21BTC are used in Ethereum and other blockchains in order to incorporate Bitcoin and its possession into smart contracts in order to engage with DeFi applications and use it in other dApps. Its partnership with Crypto.com is likely to improve these abilities for providing liquidity and safe custody services. The Crypto.com partnership is expected to bolster these capabilities to ensure the requisite liquidity and safe custody services.
Crypto.com’s involvement will provide 21. co with access to a deep liquidity pool, facilitating smoother transactions and greater stability for wrapped Bitcoin. Crypto.com's advanced matching engine will further enhance the trading experience, making 21BTC a more attractive option for both retail and institutional investors. This collaboration aims to streamline access to wrapped Bitcoin, supporting the growing demand for versatile crypto products.
21.co and Crypto.com Partnership Expansion
Looking ahead, 21. co and Crypto.com plan to expand their partnership, though specific initiatives have yet to be disclosed. Potential areas for expansion include additional wrapped tokens such as 21SOL, 21BNB, 21BCH, and 21ADA. These tokens stand to benefit from the enhanced liquidity and custody solutions provided through the collaboration, positioning 21.co to offer a broader range of wrapped assets to the market.
Despite the positive outlook, the partnership acknowledges existing regulatory challenges. 21.co’s wrapp#ed tokens remain unavailable in certain jurisdictions, including the United States, due to regulatory restrictions. The companies have reiterated that users in these regions cannot mint or burn wrapped tokens. This highlights the ongoing regulatory hurdles that crypto companies must navigate as they scale their innovations and expand their global reach.
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