- Tokensoft has partnered with Anchorage to launch Wrapped Zcash (WZEC).
- Zcash makes its debut on Ethereum through Wrapped Zcash.
- Many Non-Ethereum cryptocurrencies were tokenized to the ERC-20 standard.
Tokensoft is the leading technology platform for issuing crypto assets and it administers the digital asset representation on the Ethereum network. Meanwhile, Anchorage is a crypto asset platform for institutional investors that provides custody for the staked Zcash (ZEC).
ZEC makes its presence through Wrapped ZEC
Previously, crypto exchanges have been delisting privacy coins like ZEC, which is the native cryptocurrency of the Zcash blockchain. But with this, Zcash will have a chance to enter the decentralized exchange (DEX) ecosystem in the form of WZEC.
WZEC is the first crypto asset launched by Wrapped. It is also pegged in the ratio of 1:1 to the current price of the original ZEC cryptocurrency. Additionally, WZEC also plans to issue other tokens like Handshake, Avalanche, and Celo in the future.
Meanwhile, other firms have developed similar versions of the same token type including Wrapped Bitcoin, tBTC, and StakedDASH. Moreover, other people consider stablecoins like USDT as wrapped tokens as well.
WZEC Benefits for ZEC Holders
To generate WZEC, holders of the cryptocurrency have to stake their ZEC first. An equivalent WZEC will be minted to the investor, which is compatible with Ethereum and the decentralized finance (DeFi) market.
In essence, Zcash investors are entering into DeFi with WZEC. They are also expecting that the availability of WZEC on the Ethereum network will provide them various benefits. Some of these are: enabling access to shielded Zcash on ETH, providing interoperability of Zcash with DApps and streamlined integration with wallets, and integrating exchanges with Ethereum.
As Tokensoft Inc CEO Mason Borda said,
We’re looking forward to enabling a more interoperable form of Zcash with WZEC. Users of WZEC will have the ability to use their Zcash in a variety of DeFi applications. Additionally, exchanges will now be able to hold Zcash while meeting their compliance requirements.
Recently, many non-Ethereum cryptocurrencies were tokenized to ERC-20 standard tokens to enable holders to transact the asset with Ethereum-based projects. This aims to allow the holders to participate in the DeFi market for more profits.