Crypto custodian BTSE has released an ERC-20 token representing Monero (XMR) on the Ethereum network, granting investors new exposure to the privacy-centric coin.
The WXMR ticker mark, Bundled Monero, is meant to add greater liquidity to the DeFi ecosystem. The latest commodity is completely backed by Monero at a one-to-one ratio and protected by BTSE.
In a press release shared with Cointelegraph, BTSE reported that WXMR “gives Monero’s holders more flexibility to use their tokens without having to sell them to Ethereum or stablecoins in order to access the many exciting opportunities in DeFi.”
Monero is one of the most convincing examples of crypto use, and its advocates see XMR as fulfilling one of the key tenants of decentralised networks: privacy assurances.
While governments have consistently welcomed digital assets such as Bitcoin (BTC) and Ether (ETH), they have become far more dismissive of privacy coins such as XMR and Zcash (ZEC). Weary with Know The Client and Anti-Money Laundering Laws, exchanges have been delisting privacy coins to insure that they do not break the legislation.
Recently, Bittrex has been the newest high-profile exchange of privacy coins, including XMR.
In this way, BTSE says that Monero’s greatest strength—strong privacy features—is often seen as a downside. By carrying Wrapped Monero, users can have the clarity required to fulfil KYC/AML requirements that are becoming increasingly prevalent in crypto trading.
If the bundled variant of Bitcoin is any indication, Monero could get a boost from WXMR. Wrapped Bitcoin (WBTC) helps users to use BTC as leverage on the Ethereum network, a move that fueled the DeFi bubble.
In the case of WBTC, according to Sam Bankman-Fried of Alameda Analysis, there has been further flow-through from DeFi to Bitcoin’s price. It remains to be seen if the valuation of XMR would benefit from a similar flow-through.
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