CoinShares, a prominent European crypto asset management company, has introduced a new investment product that provides exposure to Toncoin, a cryptocurrency closely linked to the Telegram messaging platform.
CoinShares International has announced its merger with blank-check company Vine Hill Capital Investment Corp. This strategic move is aimed at launching an exchange-traded product (ETP) focused on Toncoin (TON).
The newly launched product, named CoinShares Physical Staked Toncoin, commenced trading on Tuesday on SIX, Switzerland's principal stock exchange, under the ticker CTON.
Toncoin serves as the native cryptocurrency for The Open Network (TON), a blockchain platform that boasts deep integration with the Telegram messenger. In the past year, TON has experienced a notable downturn; its market capitalization has decreased by 59% year-to-date, reaching $5.7 billion as of the time of this report, according to data from CoinGecko.
2% Staking Yield Offered
CoinShares highlighted the significant potential of the TON blockchain, stating, "With Telegram's 900+ million active users and TON’s high-performance capabilities of over 104,000 transactions per second, the blockchain combines technical performance with existing market reach."
The new ETP is designed to generate automatic yield through network validation rewards. It features a 2% staking yield and will facilitate trades in US dollars.
This ETP is not CoinShares' first foray into offering TON-related investment products in Europe.
TON is also a component of the CoinShares Altcoins ETF (DIME), an ETP available for trading in the US. This ETF, launched in early October, provides investors with exposure to a variety of altcoins, including Solana (SOL), Polkadot (DOT), Cardano (ADA), Cosmos (ATOM), and others.
The introduction of the CoinShares Toncoin ETP coincides with developments from Wallet in Telegram, a third-party crypto wallet application integrated within Telegram. This wallet has recently begun offering tokenized stocks and exchange-traded funds (ETFs) through its xStocks platform.
An announcement made on Monday confirmed that Wallet in Telegram is now providing access to tokenized shares of 50 different stocks and ETFs, with some of these instruments offering dividend payouts.
Toncoin showed a moderate positive reaction to the news, experiencing a price increase of approximately 5% to $2.30 on Tuesday. At the time of this publication, the token was ranked as the 35th largest cryptocurrency by market capitalization, according to CoinGecko.