Swiss Collaboration Is Launching a Bitcoin-Backed tzBTC Token On The Tezos Blockchain

The Tezos Foundation has collaborated with several Swiss-based cryptocurrency companies to tokenize Bitcoin. Called tzBTC, it gives holders the ability to interact with Tezos smart contracts while pegging to the value of Bitcoin.

Tokenized Bitcoin On Tezos Blockchain

The Bitcoin Association Switzerland announced launching the tzBTC digital token in a press release shared with CryptoPotato.

It’s entirely backed by the primary cryptocurrency – Bitcoin – and it uses the recently developed FA1.2 Tezos token standard. Thus, holders will be able to code commands on the Tezos blockchain and execute bitcoin transfers from one party to another.

Different parties are involved with the tzBTC issuance process. Keyholders, for example, are responsible for securing the Bitcoin storage and for the mining. Inacta, Swiss Crypto Tokens, Taurus, and LEXR will perform these functions.

Gatekeepers are accepting Bitcoin from the buyer and hand out tzBTC in return while ensuring full compliance with KYC and AML rules. Bitcoins Suisse, Woorton, Synum, Bity, and Tauris are offering these services.

The press release also stated that “tzBTC” will serve as the primary vehicle for Tezos-based decentralized finance (DeFi).

“The tzBTC brings the brand and liquidity of Bitcoin to the Tezos blockchain and gains the potential for rich functionality made possible by Tezos smart contracts. This means that developers can use tzBTC to incorporate Bitcoin into decentralized applications on Tezos, gaining access to Bitcoin’s liquidity and stability.”- commented Lucas Betschart, President of Bitcoin Association Switzerland.

XTZ Recent Rally

The Tezos Foundation native cryptocurrency has been performing rather impressively as of late. During the most notable price declines in mid-March, it dropped to $1.12. Ever since then, however, XTZ has been on the rise and is currently trading slightly above $2. This represents a rally of over 80% in less than a month.

From a technical standpoint, if XTZ wants to continue its ascend, it has to break the first resistance line at $2.5. If successful, the following one is at $3.2 – where the March crash started.

Contrary, if XTZ turns bearish, the first support level is at $1.76. In case the pullback continues, the next support is further below at $1.25.