21 shares expand WBTC supply to Ethereum.

21Shares has rolled out its Bitcoin launch on the Ethereum blockchain, marking its second product launch since Solana.

WTC continues to gain attention, especially after BitGo announced plans to shift custody to a new multi-jurisdiction model.

21 shares introduced the second WBTC

The Wrapped Bitcoin, named 21BTC, emerged from a partnership between 21.co, the parent company of 21Shares, and global market maker Flow Traders. According to the announcement, 21BTC is designed to provide users with “peace of mind” when using decentralized applications.

Unlike vulnerable “lock-and-mint” methods, 21BTC prioritizes cold storage, eliminating the need for users to rely on bridges. Asset storage is handled by institutional, third-party custodians, ensuring added security.

Eliezer Ndinga, head of strategy and business development at 21.co, highlighted the company's desire to leverage the experience of the largest crypto ETP issuers globally to offer the company's experience in the packaged assets space.

Read more: Package Bitcoin (WBTC): Beginner's Guide

However, 21Shares faces the challenge of appeasing customers wary of Wrapped Bitcoin (WBTC) following Bitgo's recent decision to shift WBTC's protection to a new multi-legal model. Investors have expressed concern about Justin Sun's involvement, especially in dealing with other projects that have experienced operational problems.

“BitGo partnering with Justin Sun for WBTC is one of the craziest business decisions I've ever seen,” said Alex Bergeron of BitGo Magazine.

DeFi platform MakerDAO has raised concerns and has begun reviewing the risks associated with BitGo's new WBTC escrow model. In response, the lending protocol voted to block new users from borrowing with WBTC, resulting in a drop in demand. Data from Dune supports this, showing a drop in supply of more than 1,000 tokens in August.

Despite these obstacles, BitGo CEO Mike Belshe aims to address the fear, uncertainty and doubt (FUD) surrounding WBTC. Critics argue that they are not “intellectually honest” about their concerns.

Belsche made these comments in a recent interview, criticizing Coinbase's potential competitor to WBTC, also known as CBBTC. According to Belshe, CBBTC goes against the core principles of decentralized finance (DeFi).

Read more: 11 best DeFi protocols to watch in 2024

“If the central bank of the DeFi community chooses Coinbase as the last feeder, then I think all DeFi should lose hope,” read the report.