Anchorage partners with Tokensoft to bring wrapped layer one assets to Ethereum
First asset wrapped: Zcash (wZEC)
Diogo Mónica, Co-Founder and President
Anchorage and Tokensoft have partnered on a joint service offering that brings wrapped layer one tokens to Ethereum, beginning with wrapped Zcash (wZEC). Through the service, called Wrapped, Tokensoft will administer the technology layer of the wrapped digital asset on Ethereum, while all underlying assets will be held in the security of qualified custody on the Anchorage platform. We’re proud to partner with Tokensoft to give institutions a bridge between Ethereum and a growing list of layer one protocols.
There’s huge value in bridging layer one protocols with Ethereum. Beyond streamlining integration with exchanges already integrated with Ethereum, wrapping additional layer one protocols allows users to benefit from Ethereum’s programmability, bring additional liquidity into DeFi, and participate in the growing ecosystem of decentralized applications like Compound, Maker, and Uniswap.
More than leveraging the capabilities of Ethereum, wrapping assets allows users to continue to take advantage of the qualities that make a given protocol unique. For instance, in the case of wrapped Zcash, as with the underlying Zcash, users maintain the ability to utilize enhanced cryptographic tools to protect the privacy of their transactions, as well as selective disclosure features that allow users to share transaction details for compliance reasons.
From a technical perspective, Wrapped is designed to service any digital asset, and will rely on the ERC-1404 standard, a standard Tokensoft designed to allow free asset transfer while ensuring compliance with applicable requirements. In the coming months, the service expects to wrap a significant number of additional tokens, with Handshake, Avalanche, and Celo already under consideration.
Anchorage and Tokensoft are just getting started with this partnership, and we look forward to working together to bring many more layer one protocols to Ethereum in the future. If there’s a layer one protocol you’d like to see Wrapped, please get in touch.
Disclaimer: Custody services are offered through Anchorage Trust Company, a South Dakota chartered trust company. Trading and collateral management services are offered through Anchorage Hold, LLC, a Delaware limited liability company. Anchorage Trust Company and Anchorage Hold are not registered with the SEC or any state securities authority. Services are not yet offered to residents of New York. Anchorage Trust Company does not engage in the offer, sale or trading of digital assets. Anchorage Hold does not engage in the offer, sale or trading of securities. Anchorage Trust Company and Anchorage Hold do not provide legal, tax, or investment advice. Services are provided only to clients that meet specified standards of sophistication and have entered into the applicable custody or trading agreements. Anchorage Trust Company and Anchorage Hold are wholly-owned subsidiaries of Anchor Labs, Inc., a Delaware corporation headquartered in San Francisco, California.
Holdings of cryptocurrencies and other digital assets are speculative and involve a substantial degree of risk, including the risk of complete loss. There can be no assurance that any cryptocurrency, token, coin, or other crypto asset will be viable, liquid, or solvent. Nothing in this communication is intended to imply that any asset held in custody by Anchorage is low-risk or risk-free. Digital assets held in custody are not guaranteed by Anchorage Trust Company or Anchorage Hold and are not FDIC-insured.