TON Foundation to launch $400 million treasury following partnership with Kingsway Capital

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.