Tron is teaming up with crypto services provider BitGo to create two new tokens, which will be newly-minted Wrapped Ether and Wrapped Bitcoin (WBTC).
WBTC is essentially a synthetic representation of Bitcoin, backed by custodied holdings of that cryptocurrency. WBTC on Tron will come in the form of a TRC20 token that’s backed 1-to-1 on BitGo.
WBTC was the first token that made Bitcoin compatible with the Ethereum blockchain, a WBTC architect told Bitcoin Magazine. There is about $820 million worth of WBTC on Ethereum currently.
As previously reported by The Block, demand for WBTC began to soar in earnest in the spring, partially driven by demand for it in the context of decentralized financed use cases.
“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.