TRON has partnered with cryptocurrency services provider BitGo to create two new tokens on its blockchain, wrapped bitcoin and wrapped ether.
These new tokens will reportedly be backed 1:1 by bitcoin in the case of wrapped bitcoin and by ether in the case of wrapped ether, by funds deposited at BitGo Trust, a qualified crypto custodian in the United States.
These tokens will enter the TRON ecosystem as TRC20 tokens, and will essentially be synthetic representations of the top two cryptocurrencies by market cap on TRON. The goal is to help fuel the decentralized finance (DeFi) ecosystem on the TRON network.
DeFi has surged on the Ethereum network, with most popular applications – including Compound, Uniswap, and Aave – being built on top of ETH.
Wrapped Bitcoin (WBTC) has been one of the key drivers for its growth, allowing investors to earn interest on their bitcoin. It’s worth noting that while there is a Wrapped Ether (WETH) token being used in DeFi, BitGo has nothing to do with it.
In a statement, TRON founder Justin Sun 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.
Sun pointed out that on the TRON network that are DeFi services similar to those on Ethereum, including one similar to decentralized exchange Uniswap called JustSwap, which has hit $100 million 24-hour trading volumes since being launched about a month ago.
In a statement, BitGo representative pointed out the firm’s new strategic alliance with TRON creates “even greater opportunities for users to expand to other chains and tokenize their BTC on the Tron dApp ecosystem,” which has lower transaction fees and faster confirmation speeds than ETH, which is currently close to being at capacity.
Featured image via Unsplash.