Litecoin Launches Wrapped LTC Tokens on Ethereum Network

Litecoin has announced a new partnership with Coinut, a Singapore-based crypto exchange, to offer Wrapped Litecoin (WLTC). The tokens will be wrapped on the Ethereum network, allowing for new interoperability between the two protocols. WLTC will be pegged 1:1 to Litecoin. The main wave of wrapped ETH tokens occurred in early 2023, with the practice fading in 2024. However, Litecoin is one of the oldest surviving altcoins and is still quite visible in the market, so this announcement could bring wrapped tokens back into the spotlight.

According to the press release, the main goal of the WLTC functionality is to merge the Ethereum and Litecoin blockchains. WLTC users will retain the equivalent value of their LTC tokens, while also gaining access to several ETH applications. WLTC users will be able to take advantage of some of the more specialized features of the Ethereum blockchain, such as ERC20 smart contracts. Smart contracts can unlock a range of specialized dApp features, such as staking, yield farming, lending/borrowing, and more.

The Litecoin blockchain is not designed to support these interactions. Coinut, for its part, has built a secure infrastructure for wrapping tokens. For example, it has worked with two companies for storage solutions: Coinbase for cold storage and Fireblocks for hot wallets.

Image: freepik

Designed by Freepik