21.co’s centralized custodial model delivers an added layer of security to prevent bad actors from interfering with the underlying tokens or the mint and burn processes. The resulting Wrapped Token gives holders confidence that their tokens are fully collateralized with an institutional-grade custodian.

Onboarded wrapped asset minters & burners create a transaction request within our system. If needed, they provide the required underlying tokens to the custody address. Once verified, the comparable amount of Wrapped Tokens are minted or burned to or from the minter's wallet to ensure the token remains backed 1:1. This unique approach is designed to provide added security to the underlying process.

Our experience and proprietary operating system, Onyx, which has managed over $3.3 billion in asset creation and redemption, gives us the confidence to leverage our expertise in crypto flow management for our wrapped assets.

We are using a market maker who will constantly fill trades via RFQ at the underlying price.

At 21.co, we've established robust relationships within the cryptocurrency ecosystem. Currently, we collaborate with a trusted market maker who provides liquidity for our 21.co Wrapped Tokens. As our product grows, we're fully prepared to welcome more market makers on board if necessary. Our team has a wealth of experience in successfully onboarding market makers. Many market makers in the ecosystem are already familiar with our system, which streamlines the onboarding process. This experience and our strategic partnerships enable us to remain agile and adapt swiftly to evolving demands.

Yes

We are not planning to stake the underlyings at launch but will continue to re-assess this functionality.

Only users who are onboarded with 21.co are able to mint and burn Wrapped Tokens.