A partnership contract by Tezos and a group of Swiss companies has resulted in the preparation of the launch of tzBTC to provide greater access to both parties.

Some companies including the Swiss Bitcoin Association (BAS) and the Tezos Foundation have announced that a new token, called tzBTC, backed by a 1:1 ratio to Bitcoin and running on the Tezos blockchain, will soon be launched.

He told the partners of the partnership that “tzBTC” will be the first medium of decentralized finance (DeFi) on the Tezos blockchain.

Lucas Betschart, president of the Swiss Bitcoin Association, speaks in a statement saying that the new token integrates both platforms, creating more connection between them. He stated:

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The tzBTC coin brings the branding and liquidity of Bitcoin to the Tezos blockchain and gains rich capabilities and functionality made possible by Tezos smart contracts.

Another advantage that the “tzBTC” coin brings is the level of interoperability between the two systems. “tzBTC” can fully work on the Tezos blockchain, and it will also work with Tezos decentralized applications.

Armin Schmid, CEO of Swiss Crypto Tokens BlocHe likened the relationship between Tezos and Bitcoin to bringing railroads to the gold mine, and Schmid added that the development allows portability and creates new possibilities.

Locate Official website The tzBTC-enabled wallets include AirGap and Ledger wallets.

How will tzBTC work on Tezos:

The plan for tzBTC is that the major contributors to the token are either “trading platforms” or “key holders.”

The function of the exchanges will be to allocate “tzBTC” tokens to users in exchange for Bitcoin.

Trading platforms are financial intermediaries who have to ensure compliance with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations.

The trading platforms include “Taurus”, “Bity” and other companies such as “Bitcoin Suisse”, “Woorton” and “Sygnum”.

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On the other hand, the key holders that will essentially act as custodians mint and burn coins upon redemption are the blockchain company Inacta, the crypto-legal firm LEXR, Swiss Crypto Tokens, and Taurus.

BAS’s TzBTC page says that the token allows the Tezos network to take advantage of the general stability and liquidity of Bitcoin, by extending the utility of Bitcoin.

The page also gives a look at how to run the token, which will use a multi-signature framework, and which will not need a central issuer, ensuring transparency.

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It also says that BAS will act as a third-party intermediary, ensuring the integrity of the platform, and explains:

In short, we are making sure that “tzBTC” on the Tezos blockchain will never be issued from the Bitcoin in the address of the multi-signatures of the keyholders.

Tezos has also introduced StakerDAO (Autonomous Decentralized Autonomous Organization), to promote blockchain investments and a Proof of Stake (PoS) mechanism.

StakerDAO will be called the Tezos blockchain and will be launched this month.

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