The CEO of the TRON Foundation, Justin Sun, last night shared the news of a partnership with BitGo to bring Bitcoin (BTC) to the TRON blockchain.
#TRON DeFi is stronger working with @BitGo on this stratigic alliance. Soon $WBTC and wrapped $ETH will be on #TRON $BTC $ETH hodlers welcome to #TRON DeFi getting all the DeFi benefits without paying crazy gas fee! $TRX $JST
— Justin Sun🌞 (@justinsuntron) September 24, 2020
According to the news, this is a system that allows having wBTC on the TRON blockchain.
In the future it is expected that also wETH will arrive, so even the asset of the Ethereum blockchain, opening the possibility of having more assets from other blockchains all in one.
BitGo will act as a custodian company, which means users will have to rely on their service.
The company is regulated by US law, so users are not likely to have too many problems operating these types of assets.
The system involves a 1-to-1 peg and the creation of TRC-20 tokens on the TRON blockchain that will effectively emulate the supply of Bitcoin.
This is essentially a solution very similar to the traditional wBTC or pBTC that can be found on the Ethereum blockchain.
DeFi on the TRON blockchain
It should be remembered that this type of asset, aka the attempt to bring BTC on the TRON blockchain, was presented during the TRON 4.0 conference, where several new features were introduced including the famous JustSwap that allows trading any token based on the TRON blockchain.
The event marked a strong momentum for decentralized finance (DeFi) projects, the true mantra of the whole of 2020. A sector that was still missing on this blockchain, but since then, giant steps have been taken, for example by launching the decentralized stablecoin USDJ.
At this point the aim is to continue to move in the direction of DeFi, bringing important assets to this blockchain, to push the adoption of TRON even further.
Bitcoin on Tron still without a reason
It is worth considering, however, that while it is true that these assets will be on Tron, there is still a lack of purpose for using these tokens.
For example, wBTC is used in lending platforms, but there aren’t any on Tron yet. Moreover, it is not known when or if these new assets can be used as collateral to generate the USDJ stablecoin.