TON set to launch synthetic Bitcoin to boost its DeFi solutions
- TON announced plans to launch a synthetic Bitcoin tgBTC on the TON chain.
- tgBTC will maintain a 1:1 peg with the price of BTC.
- TON is down over 3% following the announcement.
TON revealed its plan on Thursday to launch a synthetic Bitcoin token on its blockchain, allowing users to trade, stake, and earn yield using BTC. Following the announcement, TON is down over 3%.
TON price is under pressure amid preparation to launch Teleport Bitcoin
The Open Network (TON) announced the introduction of a new synthetic Bitcoin token, TON Teleport BTC, allowing users to bridge Bitcoin directly to the TON chain.
The synthetic Bitcoin token will carry the ticker tgBTC and enable DeFi possibilities for TON users, including trading, yield farming, and staking BTC. TON claims it plans to open a $10 billion liquidity for the tgBTC token at launch.
Additionally, tgBTC will maintain a 1:1 peg with the price of Bitcoin, allowing users to redeem their Bitcoin at any time by transferring it to the Bitcoin blockchain.
TON began bridging tokens onto its ecosystem earlier in the year and successfully integrated USDT. Its team plans to continue the trend by bringing other tokens into its platform after the launch of tgBTC.
We're launching $TON Teleport $BTC, enabling trustless BTC transfers to the TON Blockchain with our synthetic token, tgBTC!
— TON (@ton_blockchain) October 31, 2024
This fully decentralized solution transforms Bitcoin from an asset meant to be HODLed into a tool for DeFi activities like:
✅trading,
✅yield farming,… pic.twitter.com/TmM54hTmb2
TON's tgBTC launch follows an emerging trend of projects bridging the top digital asset onto their platform after BitGo's wBTC faced backlash from community members due to its partnership with Bit Global. This brought the involvement of Tron founder Justin Sun, whom many regard as a controversial figure.
Other projects that have recently launched synthetic Bitcoin tokens so far include Coinbase with the cbBTC token, and Kraken with its kBTC.
Following the announcement, TON is down over 3%, pushing its weekly losses above 6%. TON has seen remarkable growth in 2024, climbing from $2 to an all-time high of $8 in June before retracing under the $5 mark.
Much of the attention surrounding TON stems from its integration in the Telegram ecosystem, giving it access to millions of users on the platform.
The blockchain is popularly known for its play-to-earn games such as Notcoin (NOT) and Hamster Kombat (HMSTR), which have received widespread recognition.
Author
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addi
