Crypto exchange Bitget on Tuesday announced it will transfer all 440 million BGB (CRYPTO: BGB) tokens it controls to the Morph Foundation, marking a decisive shift in the token's future utility and governance.
The move establishes BGB as the official gas and governance token of Morph Chain, a Layer 2 network focused on payments and onchain consumer finance.
According to the announcement, half of the transferred tokens, 220 million BGB, will be permanently burned, while the remaining 220 million will be locked, with a gradual 2% monthly release to fund liquidity incentives, ecosystem development, and education.
The transfer means Bitget will no longer control BGB's token supply, with the Morph Foundation assuming responsibility for its roadmap, burn mechanisms, and ecosystem integration.
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Bitget CEO Gracy Chen said the transfer marks "a new chapter" for BGB, which will expand beyond exchange-based use cases to power real-world settlement and payments on Morph.
Morph CEO Colin Goltra added that the foundation aims to position Morph as the "home of Bitget's onchain initiatives" while keeping its focus on building next-generation payment infrastructure.
The Morph Foundation confirmed that BGB will replace the need for a separate Morph-native token, with governance and utility unified under one asset.
By choosing BGB over issuing a new token, Morph avoids unnecessary fundraising while onboarding Bitget's base of more than 120 million exchange and wallet users directly into the network.
FAQs published alongside the announcement addressed how the integration will work in practice.
The existing quarterly BGB burns will be paused in favor of the 220 million upfront burn, with a new mechanism tied to Morph network activity until total supply falls to 100 million.
Morph Points earned by community participants will remain valid, with a detailed redemption plan to follow.
Bitget's partnership also brings significant infrastructure to Morph, including wallet integration, liquidity support, and direct collaboration with stablecoin issuers and global payment providers.
Developers building on Morph will gain access to Bitget's user base and support programs such as hackathons and builder initiatives.
By aligning token utility with an active Layer 2 chain, the transfer repositions BGB as more than an exchange-affiliated asset.
It now plays a central role in powering transactions, payments, and governance across Morph's consumer finance ecosystem, signaling a broader trend toward exchange tokens evolving into full-scale settlement assets.
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