Several months ago, BitGo and Tron teamed up to bring Wrapped Bitcoin (WBTC) to the Tron network. Tron wanted to bring the coin to its ecosystem due to its major role in helping DeFi kickstart on Ethereum. Now, BitGo finally launched WBTC, and more than that — it also brought Wrapped Ether (WETH).
WBTC and WETH arrive at Tron blockchain
With this move, the Bitcoin-pegged DeFi token finally emerged on its second blockchain. The move is huge for Tron, and a number of BitGo clients already started minting both tokens as TRC-20 tokens within the TRON ecosystem.
In fact, after a few test mints executed by BitGo itself back in December 2020, around 100 BTC ($3.4 million) was wrapped and minted on Tron’s blockchain by CoinList and Alameda Research.
The public orderbooks show that Alameda minted 1 WETH in addition to its Wrapped Bitcoins, which happened yesterday, January 5th. The company’s actions were made to meet its OTC demand, but also in order to test the brand new product, according to the firm’s Ryan Salame.
The demand for WBTC was massive on Ethereum
The announcement of the partnership between BitGo and Tron originally came in September, with the aim of bringing cross-chain solutions to TRON. With the project now being fully operational, Justin Sun seemed quite satisfied with the results, even calling stating that the alliance is blossoming.
The Ethereum-based WBTC saw nearly a parabolic growth in the second half of 2020, eventually reaching around 124,000 Bitcoins in Ethereum’s ecosystem by late November. The supply then saw a slight drop as the DeFi sector started to cool off, and BTC itself took the stage with its price breaching all known records and delving into the unknown.
WBTC levels right now are still rather high, however, as there are around 110,000 WBTC on Ethereum. According to the current prices, BitGo alone is responsible for tokenizing approximately $3,8 billion in WBTC on Ethereum and Tron networks.