Bitcoin Association Switzerland and Tezos Foundation launches new Bitcoin-backed Token - tzBTC


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.

Jayashree Ingle
CBW - External Analyst
INDIA