The developers of Tron Blockchain concluded a strategic agreement with BitGo cryptocastodial company.
Through the cooperation, Wrapped Bitcoin (WBTC) and the recently launched Wrapped Ether will be added to Tron's ecosystem as TRC20 tokens. They are provided with Bitcoin and Ether at a ratio of 1 to 1, respectively. BitGo Trust, a qualified American custodian company, is responsible for storage of the reserves.
It is expected that the addition of new tokenized assets to the Tron Block Chain will contribute to the development of services from the decentralized finance space (DeFi) in its ecosystem. WBTC, in particular, has gained significant popularity as a means of integrating Bitcoin into similar services on the Ethereum blockchain.
According to Tron founder Justin San, among other things, this step will provide an alternative for users who have to pay large fees for processing Ethereum transactions.
BitGo CEO Mike Belsch noted that WBTC is experiencing rapid growth along with the wider DeFi space. "Our new strategic partnership with Tron is creating even more opportunities for users to expand in other circuits and tokenize their Bitcoins in Tron's decentralized application ecosystem with lower costs and higher speeds," he said.