21Shares, a leading issuer of cryptocurrency exchange-traded products (ETPs), is set to launch a staking ETP based on the cryptocurrency Toncoin (TON). The Toncoin Staking ETP is a physically backed product that tracks the performance of TON and reinvests staking yields into the ETP for enhanced performance. Trading of the product will commence on the Swiss SIX Exchange under the ticker TONN on March 27.
The Toncoin Staking ETP aims to provide investors with an opportunity to earn TON staking rewards without the hassle of setting up and managing a staking node. The TON Blockchain utilizes a proof-of-stake (PoS) model, allowing validators to earn rewards by staking. Normally, users need a minimum of 600,000 TON ($2.9 million) to qualify for staking, but they can pool their assets together.
With 21Shares, investors can enjoy the benefits of staking Toncoin without the technical complexities associated with TON staking. They will have the convenience and liquidity of traditional financial markets. Ophelia Snyder, co-founder and president of 21Shares, highlighted that the Toncoin Staking ETP is the first and only TON ETP launched thus far. She explained that staking ETPs are superior to non-staking ETPs as the staking yield benefits ETP holders.
At launch, the Toncoin Staking ETP holds $25 million, equivalent to approximately 5 million TON. The ETP’s net asset value starts at $20.
The TONN ETP offers a regulated and secure way for investors to access The Open Network, a blockchain network utilized by popular crypto-friendly messengers like Telegram. The Open Network aims to create a comprehensive ecosystem of user-facing services, similar to the super-app WeChat, providing decentralized storage, VPN, payments solutions, and a native wallet within the messaging app.
The Open Network, originally known as “Telegram Open Network,” was developed by Pavel Durov’s Telegram in 2019. After a legal battle with the United States Securities and Exchange Commission, Telegram had to reduce its involvement in the blockchain project in May 2020. However, the company continued to actively promote the open-sourced TON technology and Toncoin.
TON is one of the few coins supported in Telegram’s custodial cryptocurrency wallet, known as “Wallet.”
TON has experienced significant growth in recent times, with a 134% surge over the past 30 days. Currently, the coin is trading at $4.97, representing a 4.5% decrease in the past 24 hours, according to CoinGecko.