- The crypto project tBTC was able to collect more than 7.7 million USD in a private token sale to develop a bridge between Bitcoin and Ethereums DeFi.
- The project provides a platform on which tBTC tokens covered by Bitcoin can be issued on Ethereum.
Many Bitcoin investors face the problem that they cannot participate in the DeFi market. To solve this problem, Thesis has announced tBTC. tBTC is an Ethereum-based ERC20 token that will bring Bitcoin to the Ethereum blockchain. For the further development Thesis has made a private token sale to finance the further development.
Thesis collects $7.7 million in private token sale
On Thursday Thesis announced that the platform for creating Bitcoin covered tBTC tokens on Ethereum will soon be launched. CEO and founder of Thesis, Matt Luongo, did not give a fixed date, but stated that this will happen in “weeks not months”. The idea for a Bitcoin-Ethereum bridge came from the development of the Bitcoin Rewards app Fold, Luongo told Coindesk.
On the platform, the private keys are needed to access the tokens are monitored and securely stored using the company’s own security software Keep. Keep is also still under development, but both the platform and Keep will be released at the same time, as both systems require each other.
In a private token sale, developer studio Venture Studio Thesis has already raised a total of $7.7 million in capital from tech heavyweights such as Paradigm Capital, Fenbushi Capital and the Collaborative Fund. Already in December 2018, Keep was able to raise venture capital in a financing round led by Draper Associates, Polychain Capital and Andreessen Horowitz.
Luongo describes that the demand for decentralized financial markets (DeFi) has increased significantly and many Bitcoin investors are waiting for a solution to easily enter the DeFi market:
Decentralized financial applications on Ethereum have seen clear demand. Bitcoin is the world’s largest cryptocurrency. Building a bridge that allows Bitcoin to interact with DeFi makes a lot of sense, and tBTC is a credible attempt to do exactly that.
Thesis is working on another project, the Ren protocol, which also aims to bridge the gap between Bitcoin and the DeFi market, which is still largely based on Ethereum. Luongo further describes that tBTC should become the first killer app that will be supported on the Keep network:
I am especially excited about tBTC, the first ‘killer app’ supported by the Keep network, that allows people to safely earn with their Bitcoin and take advantage of decentralized finance products built on Ethereum.
DeFi boom will persist
The decentralised financial market is seen by some experts as the new future market on which many future financial applications will be based. Therefore, innovative companies are trying to gain direct access to this market. Xpring, Ripple’s investment company, is investing in several projects to increase interoperability between the XRP Ledger and Ethereum.
In addition, TRON has introduced TRON DeLoan, a decentralized mortgage and credit platform designed to compete with Ethereum’s DeFi market. At the time of writing, more than $660 million are locked in Ethereum in DeFi applications. In February of this year, this figure rose to over $1 billion. However, it remains to be seen whether DeFi can actually live up to the hype it has sparked.
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