The Open Network Foundation, also known as TON Foundation, has raised more than $400 million in token-based investments from several venture capital firms, signaling growing interest in the Telegram messaging ecosystem. 

Sequoia Capital, Ribbit, Benchmark, Draper Associates, Kingsway, Vy Capital, Libertus Capital, CoinFund, SkyBridge, Hypersphere and Karatage participated in the investment by purchasing Toncoin (TON), the native cryptocurrency of The Open Network. 

TON Foundation described the token purchases as strategic partnerships that will help expand the TON ecosystem, though no further details were provided.

TON blockchain is a decentralized network that supports the development of Mini Apps for the Telegram ecosystem. Although TON was initially developed by Telegram’s founders, it now operates as an independent chain. 

As of January, Toncoin is Telegram’s only accepted crypto for app services.

TON blockchain has seen significant growth over the past year, with native accounts rising from 4 million to 41 million. TON Foundation claims that the Toncoin cryptocurrency has more than 121 million unique holders. 

According to the announcement, TON Foundation seeks to onboard 30% of active Telegram users to the blockchain in the next three years. 

By March, Telegram had 1 billion monthly active users, doubling in just under three years. Source: Demandsage

Benchmark partner Peter Fenton said Telegram’s user base is expected to eclipse 1.5 billion by 2030. 

Related: Toncoin surges as Pavel Durov leaves France after months

Venture capital deals on the rise

Venture capital funding continues to pour into blockchain projects as the industry gains newfound legitimacy in the United States and other markets. 

According to Simon Wu, partner at the San Francisco-based venture firm Cathay Innovation, crypto and blockchain projects “are gaining traction as viable solutions, especially in financial sectors like asset management, transactions, and tokenization.”

As legitimacy grows, capital follows.

Cointelegraph reported earlier this month that crypto venture capital deals topped $1.1 billion in February amid renewed interest in decentralized finance services.

Blockchain projects specializing in business services and DeFi attracted the lion’s share of venture financing in February. Source: The TIE

The latest Cointelegraph VC Roundup also showcased growing venture capital interest in decentralized physical infrastructure networks and real-world assets.

Related: Crypto VCs are ‘especially bullish’ on DePIN, RWAs — HashKey Capital