Blockchain Tron which launched in 2017 by Justin Sun has entered into a strategic alliance with BitGo, the custody specialists. The partnership is all set to bring wrapped bitcoin (WBTC) from the house of BitGo into the Tron ecosystem as a TRC-20 token. The token is backed roughly 1:1 by bitcoin deposited by the users at BitGo Trust which is a qualified and legal custodian entity in the US.
Wrapped Bitcoin is a synthetic form of Bitcoin and is supported by maintained and guarded holdings of the crypto. WBTC on Tron will take the form of a TRC 20 token. It was the first token which made Bitcoin compatible with the Ethereum blockchain. Presently there is about $820 million worth of WBTC on Ethereum.
The extraordinary supply of WBTC accounting for about 80% of the total tokenized Bitcoin in circulation has seen a 632% increase since May. The high demand for the token coupled with high-interest rates for lending can be an appealing scenario for the speculators.
“We are excited to expand Tron’s DeFi potential by partnering with the industry leader BitGo to bring integral cross-chain solutions such as Wrapped Bitcoin (WBTC) and Wrapped Ether to Tron,” Justin Sun, Tron’s founder, said in a statement issued.
BitGo’s role in the introduction of WBTC and a newly created Wrapped Ether token intends to assist and fuel the embryonic decentralized finance ecosystem on Tron. Wrapped Bitcoin has always been a key driver in the growth of DeFi on Ethereum.
A constant problem of the Ethereum Blockchain has been the surge in its transaction fees. The heavy traffic has congested the network to a large extent delaying the performance of transactions. The load is so much that several players are now shifting grounds on the hunt for better and efficient network chains. Tron Founder Justin Sun believes that this new move will go a long way in circumventing the ever-increasing transaction fees on the Ethereum blockchain. He said that everyone could now begin to use their ETH and BTC and enjoy all the benefits of the Tron DeFi ecosystem. All this can be done without the need to pay high gas fees on Ethereum.
He also brought mention of JustSwap, which is a service quite similar on the lines of Uniswap on Tron. He believes that the services have met with increased acceptance and success and has already achieved $100 million 24-hour volumes ever since it was launched about a month ago.
CEO of BitGo, Mike Belshe also stated that there are prospects of fruitful gains and unprecedented growth for WBTC in conjunction with DeFi’s boom. In one of his statements, he affirmed his belief that the new strategic alliance will create wider opportunities for the users per se.
“Our 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 while transacting at a lower cost and faster speed,” Belshe said in a statement.