On April 8, the Bitcoin Association Switzerland (BAS) announced the launch of a new wrapped bitcoin project called Tzbtc. The token will be used on the Tezos network and each token will be backed 1:1 with BTC. The project is now the fourth tokenized project that leverages BTC on another blockchain.
Tokenized Wrapped Bitcoin Projects Are Trending
There’s now a number of tokenized BTC projects that leverage tokens on an alternative network and claim to be backed by bitcoin held in reserves. For example, in January 2019, news.Bitcoin.com reported on the official launch of the Wrapped Bitcoin (WBTC) project led by the custodian Bitgo. WBTC uses the Ethereum blockchain and each token is claimed to be backed 1:1 with BTC that’s held by Bitgo. The WBTC project has become popular since the initial launch and there’s $7.6 million worth of BTC locked up in the system. The system has more funds locked in than the Lightning Network’s $6.9 million total value locked (TVL) and WBTC has been around for far less time.
The WBTC project that uses the Ethereum blockchain has grown more popular than the Lightning Network and has amassed around $7.6 million since the project’s launch.
The following summer, the team behind the crypto-swapping application Sideshift.ai launched a Simple Ledger Protocol (SLP) based token called BTC2 that’s backed 1:1 with BTC as well. This year on February 13, software developer Matt Luongo announced the first release of a project called Tbtc on Ethereum’s Ropsten testnet.