Wrapped was launched in October 2020 with wrapped zcash (WZEC), bringing the privacy coin onto Ethereum and into the world of decentralized finance (DeFi). Tokensoft adapted the playbook of BitGo following the runaway success of the crypto custodian’s wrapped bitcoin (WBTC) token. (Anchorage, the custodian turned crypto bank, holds wrapped assets on Tokensoft’s behalf.)
Wrapped versions of bitcoin and ether on Kadena are meant to kick-start use cases for Kadena’s multi-protocol decentralized exchange (DEX), Kadenaswap.
“A lot of DEXs focus on the highest possible liquidity and these are obviously very liquid tokens,” said Kadena CEO Stuart Popejoy.
As for Tokensoft, CEO Mason Borda said Kadena could act as a “high-throughput settlement layer” for wrapped assets.
“What we really liked about Kadena is just the multi-chain [structure] which allows it to be very high throughput,” Borda said. “It is also acting as a hub between different blockchains.”
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.