Soon there will be another network that allows people to tokenizeÂ BTCÂ in order to leverage the underlying blockchainâ€™s speed and fees. On September 24, Bitgo, the custodian of the Wrapped Bitcoin project (WBTC), the most popular tokenizedÂ BTCÂ platform to-date, announced a partnership with Tron.
Members of the crypto ecosystem will soon be able to leverage WBTC via theÂ Tron (TRX)Â network. Just like the tokenizedÂ BTCÂ created using Ethereumâ€™s ERC20 token standard, theÂ Wrapped BitcoinÂ (WBTC) team will utilize the TRC20 token standard from Tronâ€™s infrastructure. Similarly, all theÂ BTCÂ deposited is backed by theÂ Bitgo Trust, and each WBTC minted on Tron will be worth the same price as oneÂ BTC.
â€œWe are excited to expand Tronâ€™s defi potential by partnering with the industry leader Bitgo to bring integral cross-chain solutions such as â€‹Wrapped Bitcoin (WBTC) and Wrapped Etherâ€‹ to Tron,â€ said Justin Sun, founder of the Tron project and CEO of Bittorrent.
Sun also mentioned that users can utilize a decentralized exchange (dex) that is similar toÂ UniswapÂ called Justswap. â€œ[Justswap] has achieved $100 million 24-hour volumes since its start and represents Tronâ€™s strong and growing defi ecosystem,â€ Sun claimed.
WBTC has been an integral part of the decentralized finance (defi) space, and the project commands the mostÂ tokenized BTCÂ so far. Between projects like RSK, Liquid, and ETH-basedÂ BTCÂ derivatives like WBTC, renBTC, hBTC, sBTC, imBTC, pBTC, tBTC, tzBTC, btc2, and the latest addition on Tron there are over twelve tokenizedÂ BTCÂ projects people can choose from today.
The trustless tokenizedÂ BTCÂ project called tBTC just recently re-launched and thereâ€™s now 83 tBTC ($885k) in circulation on Friday afternoon. Additionally, the Polkadot ecosystem will also see a tokenizedÂ BTCÂ project with polkaBTC. Compared to all the tokenizedÂ BTCÂ platforms, WBTC eclipses them all with 73% of the supply or 83,983 tokenizedÂ BTCÂ assets according to stats fromÂ Dune Analytics.
Similarly to when Tether migrated a great majority ofÂ USDTÂ to the Ethereum network, the WBTC team says speed and lower fees was one of the reasons to partition some WBTC over to Tron. â€œSince launching WBTC in 2019, Bitgo has seen tremendous growth on Ethereum coupled with the remarkable rise of defi activity,â€ said Mike Belshe, CEO, Bitgo.
â€œOur new strategic alliance with Tron creates even greater opportunities for users to expand to other chains and tokenize theirÂ BTCÂ on the Tron dapp ecosystem, while transacting at a lower cost and faster speed,â€ Belshe added.