Cross-Chain Partnership Between Swarm and Wrapped Expands DeFi Capabilities

cryptonews.com:

Swarm and Wrapped entered into a partnership on September 7 to improve Wrapped.com's existing services for transferring cryptocurrencies between different blockchain networks. The main goal is to make it easier to convert, or "wrap," cryptocurrencies for use in decentralized finance, commonly known as DeFi.

This cross-chain collaboration between Wrapped.com and Swarm could be a pivotal point in shaping the future of this market. As we delve deeper, we'll explore Swarm's role in this collaboration and how custody-based solutions are shaping the future of wrapped crypto and DeFi.

Cross-chain technology refers to the ability to transfer assets and information between different blockchain networks. 

Wrapped.com specializes in using cross-chain technology to provide high-speed infrastructure, specifically for institutional investors. Their approach involves holding cryptocurrencies in a secure, custodial environment. 

From there, a "wrapped" version of these assets is minted onto other networks, making them more easily accessible for trading and other DeFi applications.

Berlin-based Swarm operates as a regulated DeFi platform, overseen by German financial authority BaFin. This regulation along with a secure environment for holding and transferring assets is pivotal for many companies dealing with financial transactions in the crypto space.

So, why does this matter for Wrapped.com?

Swarm's regulated environment offers a safe haven for Wrapped's crypto assets before they are wrapped and transferred to another blockchain. In simple terms, it adds an extra layer of security and regulatory legitimacy to the complex process of moving cryptocurrencies across different networks.

To understand Swarm's role better in this crypto partnership,