Bitcoin Association Switzerland and Tezos Foundation launches new Bitcoin-backed Token - tzBTC
CBW -External Analyst
Apr, 13 2020
Switzerland based group of crypto firms under the Bitcoin Association Switzerland (BAS) have collaborated with Tezos Foundation to launch a new token tzBTC. The tzBTC token will be launched soon and is said to be 1:1 Bitcoin backed token on the Tezos blockchain.
The tzBTC token will reportedly be the first vehicle for decentralized finance (DeFi) on the Tezos blockchain. The partners are assertive that tzBTC token will provide more access to both the networks in the collaboration.
The announcement of the launch came from the Bitcoin Association Switzerland (BAS) on Wednesday, April 8.
President of BAS, Lucas Betschart informed that the goal behind the launch of the tzBTC is to make Bitcoin more accessible and flexible while strengthening its position as a leading currency.
How tzBTC will work on Tezos Blockchain?
BAS will monitor the tzBTC system which is divided into two inner groups of major stockholders – namely the ‘Keyholders’ and the ‘Gatekeepers’.
The Keyholders will be the custodians that include four firms – Blockchain services firm Inacta, Token issuer firm Swiss Crypto Tokens, custody infrastructure firm Taurus and LEXR crypto legal services firm.
The Keyholders will act as custodians which will mint and burn tzBTC tokens after redemption.
Whereas the firms in the Gatekeepers group will exchange tzBTC for Bitcoins. This group includes Bitcoin Suisse (financial services firm), Sygnum (cryptocurrency bank), Woorton, and crypto exchange Bity and Taurus.
The Gatekeepers group includes mostly the financial intermediaries which will also ensure compliance to Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations.
The Association stated that the difference between the Bitcoin and tzBTC is that the token can well respond to the functionalities of the Tezos blockchain mechanism and thus can be deployed in Tezos DApps.
The tzBTC system will use a multi-signature framework that will ensure transparency within the system. The BAS will function as a third-party mediator to maintain the integrity of the platform.
Armin Schmid CEO of Swiss Crypto Tokens commented,“Taking the largest cryptocurrency and connecting it to the Tezos blockchain is like bringing the railroad to the gold mine- it allows for transportability and opens up possibilities to the gold mine.”
The collaboration is assured that the Tezos network will be benefitted from the stability and liquidity features of the Bitcoin. Also by expanding the utility of the Bitcoin, the BAS will strengthen Bitcoin’s top status.
BAS President Lucas Betschart stated that the new token will merge both the BAS and the Tezos systems and will connect them closely. He added, “The TzBTC brings the brand and liquidity to the Tezos blockchain and gains the potential for the rich functionality made possible by Tezos smart contracts.