Cryptocurrencies have become the main source of income for Telegram.

Ein Papierflugzeug. Bild von Garry Knight via flickr.com. Lizenz: Creative Commons

Telegram is primarily known as a messenger. But the integrated wallet has now become the company’s most important financial pillar. Has the messenger turned into a bank and exchange?

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In essence, Telegram is not a messenger at all, but a cryptocurrency exchange. At least, this is what the recently revealed sources of revenue for the formerly Russian company indicate.

The Financial Times has obtained access to a previously private balance sheet for the years 2022 and 2023. This document shows a total loss of $108 million on revenues of $342.5 million. Among the revenues are several items related to crypto.

The smallest contribution comes from a „gain on the revaluation of digital assets,“ which amounts to only $500,000. Much more significant was the $17.8 million earned from the sale of „collectibles,“ or NFTs. By far the largest item is the „integrated wallet,“ which brought in $130 million. Together, crypto made up more than 40% of Telegram’s revenues.

The wallet became Telegram’s most significant revenue source in 2023, surpassing premium subscriptions and advertising. It went live in April 2022 but was initially limited to TON and collectibles, leading to rather negative sentiment among users. It wasn’t until September 2023 that Telegram officially made the wallet available to all users, and in April 2024, it integrated Tether USD (USDT).

You can activate the wallet by entering „wallet“ in the search field and then opening the channel @wallet. The wallet appears to have two parts: the normal wallet and TON Space.

The normal wallet allows the use of TON, Bitcoin, and USDT but requires verification to deposit money. It is likely custodial, facilitating the purchase of coins via a bank card or P2P. TON Space, on the other hand, is non-custodial and requires verification, but only supports TON, USDT, and NFTs on the TON blockchain. Coins cannot be purchased but can be swapped. With „Wallet Earn,“ users can also earn considerable interest on their dollar deposits.

The Telegram Wallet

Through the ability to buy or exchange coins, Telegram seems to have tapped into strong revenue streams. Since integrating USDT, it has quietly become a dollar bank – although currently, it operates solely on the TON blockchain. This, however, has not negatively impacted revenues in 2023.

Conversely, collectibles were less lucrative. While they brought in almost $92 million in 2022, revenues dropped to under $18 million. Although NFTs are a powerful tool for generating significant funds at the right moment, they appear to be too unstable for sustainable financing.

The TON blockchain forms the backbone of the wallet. Originally developed at Telegram, it was spun off due to regulatory issues. It is not clear to what extent Telegram itself holds TON coins. However, „digital assets“ now make up the largest portion of the company’s capital reserves. While cash reserves—i.e., fiat money in bank accounts—totaled just $170.9 million, by the end of 2023, the company held „digital assets“ worth almost $400 million, surpassing real estate, factories, data centers, and other equipment. These digital assets could include cryptocurrencies like Bitcoin or TON, but also dollar tokens such as USDT.

For Telegram, revenues from cryptocurrencies are likely more important than ever before. The company had hoped to cover its immense expenses through an IPO within the next two years. As recently as March, founder Pavel Durov told the Financial Times he had already received commitments from potential investors for a valuation of over $30 billion. However, after his arrest in France, these plans are likely on hold; the bonds Telegram has issued have significantly plummeted.