Tokenization firm Libre announced plans to launch a $500 million Telegram Bond Fund (TBF) on the TON blockchain.

Tokenization firm Libre is launching a $500 million Telegram Bond Fund (TBF) on the TON blockchain, according to a report by The Block.

The move marks a significant step in bridging traditional finance (TradFi) and decentralized ecosystems.

TBF is the latest development in the growing trend of real-world asset (RWA) tokenization. It backs over $2.35 billion in outstanding Telegram bonds with over $2.35 billion in outstanding Telegram bonds.

The firm is tokenizing existing Telegram debt to give accredited investors access to institutional-grade fixed-income products with full on-chain utility.

The tokenized bond fund can serve as collateral for borrowing and on-chain product development within the TON ecosystem. TON, or The Open Network, is increasingly integrated with Telegram’s 950 million-plus user base.

“What we’ve created is like a fixed income fund that acquires the bonds and then we tokenize the fund,” Libre CEO Avtar Sehra said in the interview.

When users purchase units in Libre’s Telegram Bond Fund on the TON chain, they can access the returns of the underlying bonds themselves.

They can use the bonds for collateral and ease transfers. Ultimately, the bonds also help create utility with these financial instruments.

This development comes amid growing interest in Telegram’s yield bonds, which have a relatively high yield of up to 9.4%.

Meanwhile, this is not the first time Libre has ventured into this space. The tokenization firm recently tokenized over $200 million in assets across major institutional funds.

Among them are BlackRock (NYSE:BLK), Brevan Howard, Hamilton Lane, and Nomura’s digital assets unit, Laser Digital.

Libre’s initiative to launch TBF follows closely on the heels of asset management giant Franklin Templeton’s move to expand its presence in the space by launching a tokenized money market fund on the Solana blockchain.

Much like Libre, Franklin Templeton is leveraging blockchain rails to modernize access to traditional yield-bearing assets. At the same time, it’s enabling on-chain programmability and composability.

However, Libre’s decision to build on TON reflects a strategic bet on Telegram’s unique distribution advantages.

While Telegram originally developed it, TON blockchain is now a standalone project. However, it still retains deep integration with the messaging platform.

Over the past year, the network has introduced a series of crypto-native features aimed at mass adoption. One of the latest is a TON Space wallet update allowing users to pay gas fees with Telegram Stars. This move lowered the friction for interacting with blockchain-based assets.

This seamless connection between messaging and finance is central to Libre’s long-term vision. Sehra noted that many clients seek exposure to financial products embedded within ecosystems they already use.

With Telegram as a gateway and TON as the infrastructure, TBF could become a cornerstone of real-world financial integration in Web3.

Despite this report, however, TON TVL (Total Value Locked) continues to decline, down almost 2% in the last 24 hours to $136.2 million. In the same way, Toncoin (TON) price is down by almost 2% in the last 24 hours, and was trading for $3.23 as of this writing.