Ton Foundation and Kingsway Plan $400M PIPE Structure to Boost Toncoin’s Institutional Adoption

Ton Foundation and Kingsway Capital plan to raise at least $400 million for a new treasury company. The company will use a private investment in public equity (PIPE) model. The project aims to legitimize Toncoin ownership via public markets. The Ton Foundation and investment firm Kingsway Capital Partners are working to launch a treasury company, according to Bloomberg. The initiative will focus on custodial services for Toncoin, with an initial investment target of $400 million. According to informed sources, the company will use a private investment in public equity (PIPE) structure, in which a public company issues shares to a select group of private investors. One of the investors will be Kingsway, headed by Manuel Stotz, who also serves as the current president of the Ton Foundation. Neither Stotz nor representatives from the foundation commented at the time of publication. The project is receiving financial backing from Cohen & Co, which previously helped organize a $1.5 billion structure linked to Ethereum. Cantor Fitzgerald, a leading company in establishing public crypto holdings, has also shown interest in the project. Increased interest in such initiatives is due to the success of Strategy (formerly MicroStrategy), founded by Michael Saylor, which invested heavily in Bitcoin and saw its shares jump over 3,400% in five years. More than 100 entities have since developed models to own crypto assets via the stock market. The new Ton Foundation project aims to follow this model by concentrating assets in Toncoin for institutional investment. Although TON is formally separate from Telegram, its price remains sensitive to news about the messaging platform and its founder, Pavel Durov. At the time of publication, Toncoin is ranked 21st among crypto assets by market capitalization, at $7.7 billion, having declined nearly 40% since the start of the year while Bitcoin has surged alongside Telegram’s continued expansion. Experts believe the project could strengthen Toncoin’s institutional adoption and open a new channel for token investment in public markets, particularly in the US, where the fund is expanding its presence.

Source: Coinpaper