Soon there will be another network that will allow people to tokenize BTC to take advantage of the speed and rates of the underlying blockchain. On September 24, Bitgo, the custodian of the Wrapped Bitcoin (WBTC) project, the most popular tokenized BTC platform to date, announced a partnership with Tron.
Crypto ecosystem members will soon be able to leverage WBTC via the Tron (TRX) network. Just like the tokenized BTC created using Ethereum’s ERC20 token standard, the Wrapped Bitcoin (WBTC) team will use the TRC20 token standard from Tron’s infrastructure. Likewise, all deposited BTCs are backed by the Bitgo Trust and each WBTC minted on Tron will be worth the same price as a BTC.
“We are excited to expand Tron’s defining potential by partnering with industry leader Bitgo to bring integrated cross-chain solutions such as Wrapped Bitcoin (WBTC) and Wrapped Ether to Tron,” said Justin Sun, founder of the Tron project and CEO of Bittorrent.
Sun also said that users can use a Uniswap-like decentralized exchange (dex) called Justswap. “[Justswap] it reached volumes of $ 100 million within 24 hours of inception and represents Tron’s strong and growing ecosystem, ”said Sun.
WBTC has been an integral part of the decentralized finance space (defi) and the project commands the most tokenized BTC so far. Between projects such as RSK, Liquid and ETH based BTC derivatives such as WBTC, renBTC, hBTC, sBTC, imBTC, pBTC, tBTC, tzBTC, btc2 and the latest addition on Tron there are over twelve tokenized BTC projects including people they can choose today.
The trustless tokenized BTC project called tBTC was recently relaunched and there are now 83 tBTC ($ 885k) in circulation on Friday afternoon. Furthermore, the Polkadot ecosystem will also see a tokenized BTC project with polkaBTC. Compared to all tokenized BTC platforms, WBTC outshines them all with 73% of the offering or 83,983 tokenized BTC assets according to Dune Analytics statistics.
Similar to when Tether migrated most of USDT to the Ethereum network, the WBTC team says the speed and lower rates were one of the reasons for splitting some WBTCs on Tron. “Since the launch of WBTC in 2019, Bitgo has seen tremendous growth on Ethereum along with the dramatic increase in defi activity,” said Mike Belshe, CEO of Bitgo.
“Our new strategic alliance with Tron creates even greater opportunities for users to expand to other chains and tokenize their BTCs on the Tron dapp ecosystem, transacting at a lower cost and faster speed,” added Belshe.
What do you think about the fact that Bitgo uses both Ethereum and Tron to issue WBTC? Let us know in the comments section below.
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