Nov 13, 2024
6thTrade
Litecoin has teamed up with Coinut, a Singapore-based crypto exchange, to introduce Wrapped Litecoin (WLTC) tokens on the Ethereum network. This move aims to boost interoperability between the Litecoin and Ethereum ecosystems, opening access to new features for users.
Despite the collaboration announcement, Litecoin’s price has seen a slight decline, with questions arising over whether token wrapping has enough appeal to drive widespread adoption.
Launch of WLTC: A New Frontier for Litecoin
In its latest initiative, Litecoin is collaborating with Coinut to roll out Wrapped Litecoin (WLTC) tokens. WLTC will be issued on the Ethereum network and pegged 1:1 with Litecoin, offering Litecoin users seamless access to Ethereum’s blockchain and its decentralized ecosystem. “Litecoin is trusted by millions. Now, with Wrapped Litecoin, these users can access Ethereum’s ecosystem seamlessly and confidently,” stated Xinxi Wang, Founder and CEO of Coinut.
Though the popularity of wrapped tokens has declined since early 2023, Litecoin remains one of the longest-standing altcoins, and this initiative could reignite interest in token wrapping.
Litecoin’s WLTC: Expanding Access to Ethereum’s dApps
The WLTC project seeks to bridge Litecoin and Ethereum blockchains, allowing users to hold Litecoin-equivalent tokens and utilize Ethereum-based applications. WLTC users will benefit from increased liquidity on Ethereum's decentralized exchanges, as well as access to Ethereum’s specialized functionalities, such as ERC-20 smart contracts, staking, yield farming, and lending.
Coinut has set up a secure infrastructure for wrapping WLTC, partnering with Coinbase for cold storage and Fireblocks for hot wallet solutions, ensuring secure storage and transactions for WLTC holders.
While WLTC brings new opportunities to Litecoin users, its success will depend on the level of market interest and whether wrapped tokens maintain relevance as a bridge between blockchains following their 2023 peak.
