21.co debuts Wrapped Bitcoin on Solana, targeting $1 trillion in idle Bitcoin funds

Crypto services provider 21.co has announced its Wrapped Bitcoin token on the Solana, called 21BTC. This move is set to bridge Bitcoin with Solana’s smart contract capabilities, enhancing liquidity and utility across networks.

The announcement adds that tokens “will play a crucial role in the digital transformation of capital markets,” but the on-chain interoperability is still a limiting factor, as the Bitcoin blockchain has over $1 trillion in idle funds that can be easily moved to other chains.

“Users want to do more with their liquidity, like explore decentralized applications and new opportunities on networks like Solana. 21BTC on Solana provides native access to Bitcoin on Solana through a simple and secure solution that creates cross-chain compatibility, liquidity and utility,” said Eliezer Ndinga, Head of Strategy and Business Development, Digital Assets at 21.co. “As one of the world’s largest issuers of crypto ETPs, 21.co is uniquely positioned to launch wrapped tokens due to the firm’s extensive asset management experience and operational excellence. 21.co is able to utilize the knowledge and economies of scale we’ve gained managing crypto ETPs, and apply them to the world of tokenization to ensure institutional-grade security and custody. 21BTC on Solana is the latest addition to that offering and we’re thrilled to bring this product to customers.”

Notably, 21.co doesn’t use the “lock and mint” model commonly used for cross-chain operability, which consists of a smart contract locking the original asset and minting its wrapped version in another blockchain. Instead, the firm leverages its asset management expertise to offer institutional-grade security and custody for its wrapped tokens, which are fully collateralized and held by third-party custodians.

Some of the largest exploits in crypto’s history were made possible through lock and mint models, such as BNB, Wormhole, and Nomad bridges.

“This is an exciting project to be involved in and we are delighted to be working together with 21.co and the Solana Foundation to securely launch Bitcoin on the Solana blockchain,” said Michael Lie, Global Head of Digital Assets at Flow Traders. “The Solana network and its applications have seen extensive growth and adoption since 2020. Flow Traders is delighted to support this initiative and has long provided liquidity to 21.co ‘s affiliate 21Shares and its Solana ETP. With the introduction of 21BTC as secure wrapped Bitcoin on the Solana network, users are able to make use of Bitcoin in decentralized finance applications, which is another step towards broader adoption and efficiency of the entire asset class.”