Libre, a tokenization company, has revealed its intention to introduce a Telegram Bond Fund (TBF) worth $500 million on the TON blockchain. This initiative represents a significant step towards connecting traditional finance (TradFi) with decentralized ecosystems.

The TBF is a notable advancement in the trend of tokenizing real-world assets (RWA), supported by Telegram bonds amounting to over $2.35 billion. The fund converts existing Telegram debt into tokens, enabling accredited investors to access high-quality fixed-income products with complete on-chain functionality.

Libre's innovative approach allows the tokenized bond fund to be used as collateral for borrowing and creating on-chain products within the TON ecosystem, which is closely linked to Telegram’s extensive user base of over 950 million.

Libre's CEO, Avtar Sehra, explained that the fund acquires bonds and then tokenizes them, offering users the opportunity to benefit from the bond returns directly. This setup also facilitates using the bonds as collateral and simplifies transfers, while enhancing the utility of these financial instruments.

In a strategic move, Libre is looking to capitalize on Telegram's distribution advantages by building on the TON blockchain, emphasizing the seamless connection between messaging and finances. This step aligns with Libre's commitment to delivering financial products embedded within widely-used ecosystems like Telegram.

While the launch of TBF aligns with the broader trend of RWA tokenization, Libre's focus on TON underscores its faith in Telegram's unique distribution strengths. This move comes amidst a growing interest in Telegram's high-yielding bonds, which have attracted significant attention from investors seeking attractive returns.

Despite the positive momentum generated by TBF's launch, the Total Value Locked (TVL) on the TON network has experienced a slight decline of nearly 2% in the past 24 hours, with the Toncoin (TON) price also dropping by around 2%, trading at $3.23 at the time of reporting.