A new token with Bitcoin guarantee will be launched on the Tezos Blockchain. It will be issued by a Swiss crypto firm 🇨🇭 with the intention of making BTC much more accessible to everyone.
These types of tokens are called Wrapped, or wrapped in Spanish. And they will be backed 1 to 1 in the world’s first cryptocurrency.
A new Bitcoin token on the Tezos Blockchain
The Swiss crypto firm behind the token project that will be called “Tokenized Bitcoin” (TzBCT), is the Bitcoin Association Switzerland.
Announced last Wednesday, the Bitcoin Association Switzerland the Tezos Foundation and various partners will issue the first tokenized version of Bitcoin on the Tezos blockchain, tzBTC.
“Our goal with TzBCT is to make Bitcoin even more accessible and flexible for everyone.”
Lucas Betschart, president of Bitcoin Association Switzerland said
Everyone involved hopes that this will be the first vehicle for everyone. In the world of “Decentralized Finance” (DeFi) based on Tezos Blockchain technology.
Furthermore, the team at the Swiss crypto firm intends to give Hodls of this new crypto the entrance to two different worlds. The first the ability to interact with Smart Contracts on the Tezos Blockchain, the second that the value of each token is backed 1: 1 with Bitcoin.
“The TzBTC brings the popularity and liquidity of Bitcoin to the Tezos Blockchain. Furthermore, it gains the potential of rich functionality made possible by Tezos Smart Contracts. ”
How does TzBTC work?
According to the Bitcoin Association Switzerland team, the token will have two parts: “Keyholders” and “Gatekeepers”.
The first are the custodians of the tokens, which are 4 firms recognized worldwide both outside and inside the cryptoverse. The firms are Swiss Crypto Tokens, Inacta, Taurus and LEXR.
On the other hand, the latter accept the bitcoins from the users and assign them the TzBTC in exchange. These include the Bitcoin firm Suisse, Sygnum, Woorton, and Bity and Taurus.
“Taking the largest cryptocurrency and connecting it to the Tezos blockchain is like taking the railroad to the gold mine: it enables portability and opens up possibilities for use.”
Expressed Armin Schmid, CEO of Swiss Crypto Tokens.
What will be its function?
Roman Schnider, chief financial officer and chief operating officer of the Tezos Foundation, said the addition of Bitcoin is just the spearhead for all the projects the foundation has in mind. As the community develops DeFi products on Tezos.
Although this is the company’s first wrapped token, and it doesn’t have many fully developed products for the TzBTC yet. The team hopes that in the next few months they will have the “Atomic Swaps” ready on the Tezos Blockchain.
Additionally, the token could soon join the Tezos-based StakerDAO protocol, which it plans to launch this quarter, according to its website. StakerDAO automates the capital allocation for Staking on various altcoins in unison, with the intention of obtaining a return for investors.