21.co Teams Up with Crypto.com to Enhance Wrapped Bitcoin Liquidity Solutions

Strategic Partnership Announcement between 21.co and Crypto.com

21.co, the parent company of 21Shares, which ranks among the largest issuers of crypto exchange-traded products (ETPs), has entered a strategic partnership with Crypto.com.

The latter has earned the trust of over 100 million customers worldwide, thanks to its commitment to regulatory compliance, security, and privacy.

This collaboration is designed to enhance liquidity for 21Shares’ Wrapped Bitcoin (21BTC) by leveraging Crypto.com’s robust liquidity infrastructure.

How Will 21BTC Benefit from Crypto.com’s Liquidity?

At the core of this partnership, 21BTC will source Bitcoin liquidity from Crypto.com.

The exchange's deep liquidity, competitive fee structure, and advanced matching engine provide a solid foundation for 21BTC’s operations.

Eliezer Ndinga, Head of Strategy and Business Development for Digital Assets at 21.co, expressed enthusiasm about this integration, stating,

“We are thrilled to integrate 21BTC with Crypto.com, enhancing user access to crypto and marking the starting point of a long-term, strategic partnership."

He emphasised the significance of combining expertise from both companies, adding,

"As two leaders in digital asset innovation, know-how, and operations, the 21.co–Crypto.com partnership creates a powerful combination.”

What Makes This Partnership Significant for Users?

The collaboration between 21.co and Crypto.com aims to broaden access to cryptocurrency for users worldwide.

With both companies possessing extensive experience in the digital asset domain, they are uniquely positioned to support users navigating the complexities of the crypto ecosystem.

Eric Anziani, President and COO of Crypto.com, commented on the partnership's implications:

“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.”

By aligning with a proven global crypto company like 21.co, Crypto.com enhances its commitment to offering retail and institutional crypto traders effective liquidity solutions.

Anziani noted the importance of driving innovation, stating,

"21.co is a proven global crypto company, driving innovation across multiple ETP, ETF, and tokenization projects."

What Are Wrapped Tokens and Their Importance?

The partnership also highlights the role of wrapped crypto tokens like 21BTC, which serve as synthetic products.

These tokens enable certain cryptocurrencies to function on blockchains for which they were not originally designed.

Bitcoin's inherent coding restricts it to transactions on its native blockchain.

However, by wrapping a Bitcoin with another product that is pegged to its price, it can be utilised on other blockchains such as Ethereum or Avalanche, which offer greater utility.

This innovation not only enhances Bitcoin’s functionality but also expands its use cases across different platforms.

How Is Bitcoin Custody Managed?

To ensure the security of these wrapped products, they must be adequately backed by actual Bitcoin, which is held in custody by a trusted third party.

In this case, Coinbase Global Inc, listed on Nasdaq under the ticker NASDAQ:COIN, serves as the primary custodian for 21Shares.

This arrangement provides a layer of assurance to users, allowing them to redeem their wrapped tokens as needed.

Where Does This Partnership Lead?

As both companies anticipate future developments, they are committed to expanding the strategic partnership, with more announcements expected in the pipeline.

With excitement and momentum building in the crypto space, the collaboration between 21.co and Crypto.com represents a pivotal moment for both firms as they seek to provide enhanced liquidity and innovative solutions to the ever-evolving digital asset landscape.

The partnership's implications for the future of wrapped assets and the broader crypto market are significant, highlighting the importance of collaboration in driving progress within the industry.

Important Regulatory Notes

While the potential for increased access to crypto is promising, it's important to note that 21.co Wrapped Tokens are not available in certain jurisdictions, including the United States.

Specifically, U.S. Persons are prohibited from minting or burning these tokens, ensuring compliance with relevant regulatory frameworks.