Telegram to build decentralised crypto exchange and non-custodial wallet

Eberechukwu Etike
Telegram is betting big on crypto with plans to build a decentralised exchange and non-custodial wallets for millions of users
Telegram to build it's own decentralised crypto exchange and non-custodial wallet
Telegram to build it’s own decentralised crypto exchange and non-custodial wallet

Telegram, one of the most popular messaging platforms, provides cross-platform, encrypted, cloud-based instant messaging services. It is gradually making its way into the cryptocurrency space.

According to a statement from Pavel Durov, the CEO, Telegram intends to launch a non-custodial wallet and a decentralized cryptocurrency exchange in the future as it aims to leverage blockchain technology.

This is not the first exposure to blockchain technology the messaging platform is giving to its over 550 million users. The platform has shown an affinity for the blockchain industry for quite some time.

Earlier this year, the platform, with the support of the Telegram Open Network (TON) Foundation, launched a crypto feature that allows users to send Toncoin, the organization’s cryptocurrency, to other Telegram users without any transaction fees.

In October, it also launched a username auction marketplace, Fragment, a free platform built on the TON blockchain where users can buy and sell collectibles. These collectibles are digital assets developed and stored on the public TON blockchain.

Its next step is to build tools, including non-custodial wallets and decentralized exchanges, for millions of people to trade and store cryptocurrencies securely.

Read Also: Crypto explainer: All you need to know about Decentralised finance (DeFi)

What are Telegram’s crypto plans for its users?

In a post, Pavel Durov, the CEO, discussed how the messaging platform’s incorporation of blockchain technology has impacted its growth. Fragment, its crypto payment feature, sold $50 million in usernames in less than a month after its launch via its blockchain-based auction platform.

Fragment is based on the Telegram Open Network, a blockchain that Durov initially left behind in 2020 due to regulatory pressure before returning after the community kept it alive.

Telegram to build it's own decentralised crypto exchange and non-custodial wallet
Telegram to build it’s own decentralised crypto exchange and non-custodial wallet

Due to its enormous growth success, Telegram has begun to embrace more crypto infrastructure. Durov appears to be setting the messaging app on a course for more extensive crypto buildouts.

The development of a collection of decentralized tools is the next stage for Telegram, according to Durov. These include decentralized exchanges and non-custodial wallets for safe and secure cryptocurrency trading.

He also emphasized that the blockchain industry can return power to the people through technologies like TON.

In the announcement post, he further said,

The solution is clear: blockchain-based projects should go back to their roots – decentralization. Cryptocurrency users should switch to trustless transactions and self-hosted wallets that don’t rely on any single third party.

Pavel Durov seems to be trying to reevaluate the understanding of cryptocurrency exchanges. With the downfall of FTX, which is a centralised exchange, Durov believes the solution to similar problems like this is to go back to implementing decentralised exchanges.

According to him, the blockchain industry was built on the idea of decentralisation but has sadly become concentrated by a few people who have begun misusing the power, just like in the FTX situation. Hence, the need for blockchain-based projects to go back to being decentralised is what the platform is looking to offer.

This might be a good deal for the messaging platform, given that it is already a go-to messaging app for many crypto traders, but what do the users think about this idea?

Read Also: The aftermath of the FTX: Is blockchain doomed to die?

Users’ reactions to Telegram’s big dream

For many of these Telegram users, there seems to be a little confusion about these new crypto plans, especially as the messaging platform has long been a hub for crypto fraud discussion.

With the bot feature in the Telegram app, cybercriminals have reportedly made theft and bank fraud easier on the app, which is one of many users’ major concerns about the new crypto idea, especially as it is unsure what the security trust level will be.

What do you think about this new Telegram idea?


Technext Newsletter

Get the best of Africa’s daily tech to your inbox – first thing every morning.
Join the community now!

Technext Newsletter

Get the best of Africa’s daily tech to your inbox – first thing every morning.
Join the community now!