Wrapped ZEC is now officially available on Ethereum and Zcash can now enter the ETH DeFi and Dapp ecosystem as a result of the collaboration between Tokensoft and Anchorage so let’s read more in our Zcash latest news.
Wrapped ZEC allows Zcash holders to use their funds in the ETH ecosystem as the token was developed by Anchorage and Tokensoft with more plans to issue more wrapped tokens in the future. Other notable wrapped tokens include Wrapped BTC and tBTC. Zcash can be transferred on the ETH blockchain thanks to the new token named Wrapped Zcash-WZEC. Wrapped tokens are pegged to the price of another crypto asset with a 1:1 ratio. Zcash is now staked and ETH-based tokens of equivalent value are issued.
WZEC is the result of the partnership between two companies Tokensoft and Anchorage. Tokensoft will be the leader of technical development in the system of handling the token while Anchorage will be responsible for the WZEC custody. Tokensoft and Anchorage note that there’s a huge value that bridges the layer one protocols with ETH and it is particularly useful because it allows Zcash holders to use their funds with Ethereum’s vast selection of DeFi services and dapps. Users will also benefit from the privacy features of Zcash which is something that Ethereum doesn’t provide natively.
Wrapped Zcash will benefit Ethereum in a general sense by bringing money into the app ecosystem of the blockchain. Zcash is the first wrapped token that these platforms have launched but it also plans to issue other tokens in the future as they said in a joint announcement:
“We look forward to working together to bring many more layer one protocols to Ethereum in the future.”
Outside of Zcash, wrapped tokens for Avalanche, Handshake and Celo are also under consideration. In the meantime, there are a lot of other wrapped tokens developed by other companies and some of the most notable examples include Wrapped Bitcoin, tBTC or tezos on Bitcoin, StakedDASH. Tether which is backed by cash is also sometimes considered as a wrapped token as well. There are minor differences between each token and all wrapped ones have a similar purpose which is to move the asset on a blockchain that is not designed to handle the particular asset.
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