Growing DeFi platform Tron has entered a strategic partnership with institutional digital asset custody platform BitGo to enhance the growth of its DeFi space. The partnership will bring two major DeFi cryptocurrencies, Wrapped BTC (WBTC) and Wrapped Ether to the Tron ecosystem.
At the same time, it will enable Wrapped Bitcoin and Wrapped Ether users to explore other use cases for BTC/ETH such as collateral for stablecoins, lending on decentralized exchanges (DEXs), payments, and flexible smart contracts within the TRON ecosystem.
While WBTC is an existing tokenized Bitcoin in DeFi that is pegged to Bitcoin, WETH is a new addition that will be pegged to Ethereum. The BTC and Ether to which these tokens are pegged will be in BitGo’s custody which will allow BTC and ETH holders on Ethereum DeFi to access the many benefits of DeFi like fast transactions and low fees on the Tron network. Justin Sun, Founder of Tron speaking on the partnership said:
“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. Everyone may now use their BTC/ETH to enjoy all the benefits of the TRON DeFi ecosystem without the high gas fees on Ethereum! JustSwap, a Uniswap alike service on TRON, has achieved $100 million 24-hour volumes since its start and represents TRON’s strong and growing DeFi ecosystem.”
Tron is one of the fastest-growing blockchain platforms in the world. It shares similarities with Ethereum such as the building of smart contracts and dApps. Because of the growing DeFi use cases on the network, BitGo has agreed to go into this alliance which apart from giving Tron users access to the DeFi advantages will also allow merchants mint WBTC and WETH from BTC/ETH in BitGo’s custody. BitGo users can now tokenize their BTC on Tron, which is a significant improvement for the ecosystem.
“Since launching WBTC in 2019, BitGo has seen tremendous growth on Ethereum coupled with the remarkable rise of DeFi activity. 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,” BitGo CEO Mike Belshe said.
By partnering with BitGo, Tron is contributing to the growth of DeFi which is attracting more investors every day. It is also a significant contribution to the crypto industry as a whole which could lead to its growth in the coming years.