A new token with a Bitcoin guarantee is being introduced in the Tezos blockchain. It is issued by a Swiss crypto company to make BTC more accessible to everyone.
These types of tokens are called Wrapped upor wrapped in Spanish. And they are supported 1 to 1 in the world’s first cryptocurrency.
A new Bitcoin token in the Tezos blockchain
The Swiss crypto company behind the token project “Tokenized Bitcoin” (TzBCT) is the Bitcoin Association Switzerland.
The Bitcoin Association Switzerland, announced last Wednesday, the Tezos Foundation and various partners will release 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 the 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.
In addition, the team of the Swiss crypto company intends to give Hodls this new crypto access to two different worlds. On the one hand the possibility to interact with smart contracts in the Tezos blockchain, on the other hand that the value of each token is secured 1: 1 with Bitcoin.
“The TzBTC brings the popularity and liquidity of Bitcoin to the Tezos blockchain. In addition, Tezos Smart Contracts has the potential of extensive functionality. “
How does TzBTC work?
According to the Bitcoin Association Switzerland team, the token will consist of two parts: “Keyholders” and “Gatekeepers”.
The first are the administrators of the tokens, which are 4 companies that are recognized worldwide both outside and inside the Cryptoverse. The companies are Swiss Crypto Tokens, Inacta, Taurus and LEXR.
The latter, however, accept the bitcoins from the users and assign them the TzBTC in exchange. These include the Bitcoin companies 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 opportunities for use.”
Expressed Armin Schmid, CEO of Swiss Crypto Tokens.
What will its function be?
Roman Schnider, CFO and chief operating officer of the Tezos Foundation, said the addition of Bitcoin is only the spearhead for all projects the foundation has in mind. While the community is developing DeFi products on Tezos.
Although this is the company’s first packaged token and there aren’t many fully developed products for the TzBTC yet. The team hopes that the “Atomic Swaps” will be available on the Tezos blockchain in the coming months.
In addition, the token could soon join the Tezos-based StakerDAO protocol, which its website is slated to launch this quarter. StakerDAO automates capital allocation for betting on different altcoins in line with the intent to generate a return for investors.