21Shares introduces 21BTC wrapped Bitcoin on Ethereum platform

21Shares has launched 21BTC, a new Wrapped Bitcoin (CRYPTO:WBTC) on the Ethereum (CRYPTO:ETH) blockchain, enhancing the range of its digital asset offerings.  

This marks 21Shares' second introduction of this product, following a similar launch on Solana (CRYPTO:SOL).  

The new product is developed through a partnership between 21.co, the parent company of 21Shares, and Flow Traders, a global market maker.  

The introduction of 21BTC aims to provide users with a secure method to interact with decentralised applications (dApps) without the risks associated with bridging technologies.  

The 21BTC wrapped Bitcoin differentiates itself by utilising institutional-grade cold storage for asset management.  

This approach eliminates the reliance on vulnerable “lock-and-mint” methods often used in similar products.  

Instead, 21BTC leverages third-party custodians to ensure a higher level of security, according to Eliezer Ndinga, head of strategy and business development at 21.co.  

Ndinga highlighted the company’s goal of expanding its footprint in the wrapped assets market by leveraging its experience as one of the world’s largest issuers of crypto exchange-traded products (ETPs).  

The launch of 21BTC comes amid growing concerns in the DeFi sector following BitGo's decision to transition its Wrapped Bitcoin (WBTC) custody to a multi-jurisdictional model.  

This move has raised eyebrows among investors, especially due to the involvement of Justin Sun, a figure associated with various controversial projects.  

BitGo's new custody model for WBTC has prompted DeFi platform MakerDAO to halt new borrowing against WBTC, leading to a notable decrease in demand.  

According to data from Dune Analytics, there was a reduction in WBTC supply by over 1,000 tokens in August.  

Despite the scepticism, BitGo CEO Mike Belshe defended the firm’s decision to shift its custody model and criticised the concerns raised by others, including competitors like Coinbase’s cbBTC.  

Belshe argued that such criticisms lack "intellectual honesty" and maintained that BitGo’s new approach aligns with the principles of decentralised finance (DeFi).

At the time of writing, the Wrapped Bitcoin (WBTC) price was $56,627.37.