Holders of the privacy-focused cryptocurrency Zcash (ZEC) will be able to use it in the Ethereum ecosystem in the form of Wrapped Zcash (WZEC), a ‘wrapped’ ERC-1404 token. This capability has arisen thanks to the collaboration between custodian Anchorage and the TokenSoft platform.
We’re proud to support the launch of https://t.co/HNroVZlw9J, a collaboration with @Anchorage and @cmsholdings. A partnership designed to provide access to layer one protocols, more about the partnership here: https://t.co/NAOt4w03pW
— Tokensoft Inc. (@TokensoftInc) October 21, 2020
Tokensoft took on the task of the service’s technical development, with Anchorage handling custody of the assets that back the token.
‘Zcash on Ethereum,’ like other similar tokens, is pegged to the underlying asset at 1:1.
WZEC has the following properties:
- Access to shielded Zcash addresses on Ethereum without compromising privacy.
- Zcash compatibility with decentralized applications such as Maker, Uniswap and Compound.
- Optimized integration with wallets and exchanges integrated with Ethereum.
‘WZEC will add liquidity to DeFi and allow users to derive value from the properties that make Layer-1 protocols unique,’ said Nathan McCauley, co-founder and CEO of Anchorage.
‘Exchanges will now be able to custody Zcash in a way that complies with regulatory requirements,’ added another advantage of the new token, Mason Borda, CEO of Tokensoft.
As part of the Wrapped project, the company plans to expand the roster of wrapped tokens in the future. Among those under consideration are Handshake (HNS), Avalanche (AVAX) and Celo (CELO).
Earlier, the token-sale platform CoinList updated a record for the daily issuance of the Bitcoin-backed Wrapped Bitcoin (WBTC).
According to BTC on Ethereum, the total value of WBTC reached nearly $1.39 billion. Behind it by a large margin are renBTC ($339.1 million), HBTC ($78.0 million) and sBTC ($29.7 million).
The total market capitalization of Ethereum-based tokens pegged to Bitcoin stands at $1.86 billion.
In this market segment, WBTC accounts for 74.2%. RenBTC — 18.2%, HBTC — 4.16%.
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