Tron & BitGo Launch Wrapped Bitcoin (WBTC) And Ethereum (WETH) On Its Blockchain

Tron & BitGo Launch Wrapped Bitcoin (WBTC) And Ethereum (WETH) On Its Blockchain

  • Bitgo, the sole custodian of wrapped Bitcoin (wBTC) and wrapped Ethereum (wETH) introduces the synthetic tokens to the Tron ecosystem.
  • Tron becomes the second blockchain to welcome Bitgo’s synthetic tokens after Ethereum.

Bitgo, a US-based digital assets custodian, announced a partnership with the Tron Foundation to integrate Bitcoin and Ethereum synthetic tokens, wBTC and wETH, on Tron’s blockchain. The partnership will see wrapped Bitcoin and Ethereum added on to the Tron blockchain as TRC20 tokens. This sets Tron as the second blockchain after Ethereum to add wBTC and wETH, which expands the decentralized finance (DeFi) ecosystem to Tron.

And the community is already responding to the news

Alameda Research and CoinList are some of the big firms in crypto that have already dipped their feet into minting wrapped tokens on Tron. According to BitGo’s order book, over 100 BTC have already been minted as TRC20 wBTC tokens by the two firms. Furthermore, Alameda also minted 1 wETH on Tuesday morning to satisfy the client’s demands, Alameda’s Ryan Salame said.

Wrapped Bitcoin (wBTC) is a synthetic token pegged to Bitcoin, while wrapped Ethereum (wETH) is pegged to ETH. BitGo is the sole custodian of the BTC, and ETH backing the wrapped tokens allowing clients to tokenize assets by minting wBTC and wETH. This allows the users to utilize their assets in the raging DeFi market to take up collateralized loans, lend, or stake on different platforms.

Justin Sun, the founder of Tron, said the new wrapped tokens on the blockchain open up a gateway to the “unlimited potential of DeFi” for Tron users.

In comparison to the rising gas costs, and scalability issues on Ethereum, Tron aims to offer low gas fees and faster transactions for DeFi users, Sun said.

“We dreamt of providing our users with the benefits of BTC/ETH without the high gas fees and today it is a reality.”

Over the course of 2020, the total market capitalization of wBTC exponentially grew to over $3.81 billion, as at the time of writing as the DeFi ecosystem saw a parabolic growth in use and value locked. However, as the DeFi space cooled down with the monstrous growth in Bitcoin’s price, the total minted wBTC reduced to a current level of 110,000 wBTC from a high of 150,000 wBTC in November.

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Author: Lujan Odera

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