- Wrapped Zcash (WZEC) lets token holders use their funds in Ethereum
- Anchorage and Tokensoft developed the token Wrapped ZCash (WZEC)
- Some other notable wrapped tokens include Wrapped tBTC and BTC
ZCash News Today – there has been a recent development on Zcash’s ecosystem. Wrapped ZCash (WZEC) has been introduced. This new option will allow users to enter the Ethereum DeFi and dApp ecosystem. The move came to light following the latest collaboration between Tokensoft and Anchorage. The move will also allow users to transfer ZCash on Ethereum’s Blockchain.
Wrapped tokens are typically pegged to the price of a different cryptocurrency at a ratio of 1:1. Here, Zcash is staked while Ethereum-based coins of equivalent value are issued. Tokensoft will handle the technical side of the development of the system that takes care of the token. On the other hand, Anchorage will provide custody services for WZEC’s crypto holdings. The two firms have noted that there is great value in leveraging layer one protocols with the Ethereum network.
Wrapped Zcash (WZEC) lets token holders use their funds in Ethereum
WZEC allows ZEC holders to use their funds alongside Ethereum’s DeFi services and dApps. They can also benefit from the privacy features offered by Zcash. Additionally, wrapped Zcash will benefit Ethereum by bringing funds into the Blockchain’s app space. Zcash will be the first wrapped digital asset that Tokensoft and Anchorage have launched. The partnership plans to issue more wrapped tokens in the future. They look forward to bringing more layer one protocols to Ether.
Wrapped tokens for Handshake, Avalanche, and Celo are being considered at press time. Many other wrapped tokens have been developed by other companies. Some notable examples include Wrapped Bitcoin (BTC on Ethereum’s Blockchain), tBTC (Tezos on Bitcoin’s Blockchain), and StakedDASH (Dash on Ethereum’s Blockchain). Meanwhile, stablecoins like Tether’s USDT are regarded as wrapped tokens sometimes.
DeFi Sector Has Gained More Liquidity
In other reports, the DeFi ecosystem has gained more liquidity sources. This recent development is reportedly the outcome of the collaboration between two crypto firms, Tokensoft and Anchorage. Based on the partnership, Anchorage (a digital currency custodian) will offer custody services for staked ZEC tokens.
The technical aspects and issuance of the WZEC token will reportedly be handled by tech firm, Tokensoft. This means that all Zcash investors will be able to participate in yield farming and other DeFi services, such as using dApps (decentralized applications). All WZEC holders will still be provided with the kind of anonymity that was offered by the original digital asset. Additionally, crypto exchanges can now hold the ZEC token “while working to meet their compliance obligations.”