TRON Partners With BitGo To Mint New Wrapped Bitcoin And Ethereum Tokens On Its Blockchain
- TRON launches wrapped Bitcoin and Ethereum on its blockchain.
- The blockchain aims at taking over the raging DeFi market.
Tron announced a partnership with the U.S. regulated and qualified custodian, BitGo, in a plot to launch wrapped Bitcoin (wBTC) and wrapped Ethereum (wETH) on its blockchain. These will be newly minted tokens converted to TRC20 tokens, backed by assets stored by the custodian in a 1:1 ratio.
According to Tron founder and former chief representative of the Greater China area for Ripple, Justin Sun, the latest move to add wBTC aims at bolstering the development of decentralized finance (DeFi) products on the blockchain. This is to replace Ethereum, solving its issues, including high gas fees and scalability.
wBTC is a synthetic asset token built on a different blockchain and backed by Bitcoin. The asset has attracted wild attention with the growth of DeFi in the past few months – seeing $860 million worth of BTC turned into wBTC. Such is the hype that Binance, the largest crypto exchange, listed the token earlier this month.
Over the past few months, Ethereum has faced latency, scalability, and cost issues with the rise of DeFi products and yield farming on platforms such as Uniswap and Yearn Finance. According to Justin Sun, the move of wBTC to Tron will solve these issues – especially high gas fees. In a statement obtained by BEG, Justin said,
“Everyone may now use their BTC/ETH to enjoy all the benefits of the Tron DeFi ecosystem without the high gas fees on Ethereum.”
BitGo CEO Mike Belshe followed up with Sun’s statement stating the alliance with Tron will offer “greater opportunities for users” as Tron provides a cheaper and faster platform in transactions.
He further stated the recently launched Tron-based competitor to Uniswap, Justswap, in a sustained growth trail – reaching $100 million daily volumes in a day.