21Shares launches Toncoin staking ETP on SIX Swiss Exchange

21Shares AG, the issuer of exchange-traded products, has launched the Toncoin TON -1.14% staking ETP amid the token's notable surge this month following integration by Telegram.

Dubbed TONN, the ETP has been launched on the SIX Swiss Exchange, where 21Shares already offers several other crypto products. TONN tracks the performance of Toncoin and captures and reinvests staking yields back into the ETP, 21Shares said Wednesday.

TONN essentially allows investors to earn staking rewards without needing to set up or manage a staking node. However, that comes with a cost, as 21Shares charges fees for its products. TONN levies a 2.5% p.a. fee, 21Shares co-founder and CEO Hany Rashwan told The Block.

There already seems to be some demand for the ETP as it will have about $40 million in assets under management at launch, Rashwan said. "We're always talking to our customers about what new products they're looking for and studying the market," he added.

Telegram integrating Toncoin 

Toncoin is the native token of The Open Network, a proof-of-stake blockchain formerly known as Telegram Open Network.

The messaging app giant Telegram abandoned the TON blockchain in 2020 after a court fight with the U.S. Securities and Exchange Commission. In 2019, the SEC sued Telegram, saying the company violated securities laws by failing to register its token, called "gram" at the time, with the regulator. After losing the court fight, Telegram began to return the $1.7 billion it had raised from investors in 2018 for the blockchain project.

However, despite abandoning the project, Telegram last year endorsed TON as its platform of choice for web3 infrastructure. Earlier this month, Telegram officially integrated TON to share advertisement revenue with channel owners and pay rewards using Toncoin on the TON blockchain.

Toncoin hit an all-time high of $5.69 this week on the Telegram announcement.

After Telegram's split, the TON blockchain has been managed by the TON Foundation, a nonprofit organization of contributors.

As for 21Shares, the asset manager offers over 40 ETPs on over ten exchanges and has around $7 billion in assets under management as of Mar. 26, according to its website.