• The TON Foundation and Kingsway aim to raise $400 million for a public treasury firm that holds Toncoin only.
• The company will utilize a PIPE structure, with Cohen & Co. providing advisory services and banking services.
• Toncoin ranks among the top 25 cryptocurrencies with a market cap close to $8 billion.

TON Foundation and Kingsway Capital Partners reportedly have partnered with plans to raise $400 million to launch a publicly traded crypto treasury firm that will hold Toncoin. The project aims to secure capital from private investors before launching in public markets.

According to Bloomberg, the planned vehicle will use a private investment in public equity (PIPE) structure. This model allows investors to purchase discounted shares in a publicly traded company before it is listed. All capital raised through the PIPE strategy will be used to buy and hold Toncoin, with a goal of enhancing the company’s long-term liquidity and institutional value.

Manuel Stotz, head of Kingsway Capital and president of the TON Foundation, is expected to play a leading role in the investment. Cohen & Co. will provide banking services for the company’s formation. The firm previously advised Dynamixin on a larger $1.5 billion blank-check deal to form an Ethereum-focused crypto treasury company.

TON Foundation Project Inspired by Bitcoin-Backed Corporate Treasury Models

The crypto treasury company also plans to adopt corporate treasury practices similar to those based on major cryptocurrencies like Bitcoin. Like how MicroStrategy holds Bitcoin as a reserve asset, this firm plans to acquire Toncoin as its treasury asset. 

In the digital finance sector, corporate use of crypto-based treasury models has grown considerably. More than 100 such companies have emerged following the success of Bitcoin holding firms. While Cantor Fitzgerald has shown interest in creating Toncoin-backed public firms, treasury projects focusing on cryptocurrencies like Ethereum and Solana have also gained momentum. Moreover, these developments highlight the increasing institutional demand for exposure to blockchain assets.

Also Read | Altcoins Turn to Bitcoin: Cardano and Polkadot Propose Major Treasury Swap

Toncoin Price, Market Trends, and Developments

Toncoin, a blockchain initially created by one of Telegram’s co-founders, is the native token of the Telegram Open Network. Although currently operating independently, Toncoin is closely associated with the Telegram ecosystem, with its price often reacting to updates about the messaging app. At press time, its market capitalization is approximately $7.68 billion.

Toncoin rose 2% to $3.29 following news of the treasury company’s plans, before retreating to $3.11. Nonetheless, trading volumes dropped approximately 20% in 24 hours,  indicating low activity.

The MACD indicators are showing signs of early bullish movement, and the RSI stands at around 52. Key support levels are at $3.05 and $3.10, whereas resistance is at $3.30.

In addition to the announcement, Telegram has recently launched its native TON Wallet to 87 million users in the United States. Through its institutional positioning strategy, TON Foundation is supporting its growth strategy across user segments with the aid of mass-market retail tools.

Also Read | Ethena and TON Foundation Partner to Launch USDe Stablecoin Across Telegram Wallets