Swaddle Cloths?

Hannah

So, I know that babies aren't supposed to be laid in the crib with fuzzy animals or blankets. I have a 2 week old that I was gonna try to put down in a pack n play and get myself a nap. My question is, if I swaddle him in a muslin cloth, does that count as a blanket? Does he need to not be wrapped up to lie down?

Thanks in advance :)