Libre, TON Foundation Tokenize $500M Telegram Debt

Libre, a leading firm in tokenizing real-world assets (RWAs), has announced a significant partnership with the TON Foundation, which supports The Open Network blockchain. Together, they plan to tokenize $500 million of Telegram’s debt through the launch of the Telegram Bond Fund ($TBF) on the TON blockchain. This initiative is set to be one of the largest institutional RWA deployments in blockchain history, bridging traditional finance with blockchain technology.

The tokenized Telegram Bonds will offer professional investors the opportunity to purchase parts of Telegram’s $2.4 billion bond issue. The digital bond tokens provided by Libre will allow investors to generate bond yields and use these tokens as lending assets. This creates possibilities for the tokens to serve as collateral for other financial products and borrowing operations on TON. Avtar Sehra from Libre explained that the fund operates according to traditional fixed-income fund principles, where investors receive tokenization instead of outright purchasing bonds. This system makes the bonds more transferable and increases their utility value.

Libre intends to introduce upcoming Telegram bonds into the fund, starting with an initial $500 million offering. This initiative has the potential to increase substantially over time and stands as one of the biggest attempts in history to transfer genuine financial resources from legacy systems to blockchain platforms. To support this effort, Libre will develop Libre Gateway as part of its infrastructure on TON. This system enables fund subscription by investors who can use traditional currency along with stablecoins. TON blockchain users can manage their assets through specific wallet solutions developed for this network platform, simplifying both investments and security methods.

Max Crown, CEO of the TON Foundation, highlighted the significance of this development. He identified the launch of Libre’s system and the Telegram Bond Fund as important milestones in the integration of blockchain technology with regulated financial assets. This approach ensures secure and user-friendly interactions for real-world assets within the TON community. Previously, Libre has collaborated with financial institutions such as BlackRock, Brevan Howard, and Nomura’s Laser Digital, holding over $200 million worth of tokenized assets. TON users will gain access to these assets along with the recently released TBF through the platform.

Dr. Jez Mohideen, who serves as Libre Chairman and leads Laser Digital as CEO, provided additional insights. According to Dr. Jez Mohideen, the capability of the TON blockchain allows traditional financial products to enter the decentralized finance (DeFi) space. The project creates financial instruments that benefit TON users alongside investment professionals through a blend of institutional strength and blockchain technology. In summary, Libre collaborates with the TON Foundation to enable regulated financial assets for blockchain management. Telegram bonds are getting tokenized by this venture for the purpose of providing digital solutions that enable investors to explore different methods of returning capital. The development creates new potential for financial institutions to participate in blockchain-based financial activities.