TON Foundation to launch $400 million treasury following partnership with Kingsway Capital
|- TON Foundation has reportedly partnered with Kingsway Capital to launch a $400 million TON treasury.
- The collaboration involves a PIPE financing structure headed by Kingsway Capital and other investors.
- TON held steady at $3.18 following the announcement.
The TON Foundation (TON) plans to launch a treasury reserve in partnership with Kingsway Capital through an undisclosed company, which will acquire up to $400 million worth of TON, according to a Bloomberg report on Thursday.
TON Foundation partners with Kingsway Capital to launch TON treasury
The TON Foundation is reportedly looking to establish a crypto treasury company in partnership with Kingsway Capital Partners, according to a Bloomberg report on Thursday.
Although the details of the treasury company are not yet known, it is expected to hold at least $400 million worth of TON, which will be purchased with funds from a PIPE structure led by Kingsway Capital, alongside other investors.
The report stated that the treasury is part of TON's expansion into the US under the leadership of Manuel Stotz, who also heads Kingsway Capital. The move would mark the first time a company would launch a TON treasury reserve.
Cohen & Co. is also reportedly providing the financial services for the treasury company's formation, Bloomberg added. The TON Foundation has yet to confirm the news.
The move would add TON to the growing list of cryptocurrencies that are being leveraged as a treasury reserve asset. While earlier crypto treasuries focused on acquiring Bitcoin, companies are gradually shifting toward altcoin reserves, including Ethereum (ETH), Solana (SOL), XRP, BNB and Sui (SUI).
The development comes days after TON launched its Ton Wallet in the US, enabling users to buy and trade cryptocurrencies directly within the Telegram app.
The TON Foundation also partnered with crypto exchange Crypto.com early in July, becoming a client of its custody platform, Crypto.com Custody.
TON held steady near $3.18 in the past 24 hours following the announcement.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.