365Crypto
Wrapped Bitcoin Moves to a Safer Custody System
Wrapped Bitcoin (WBTC), which allows users to use Bitcoin on Ethereum, just changed how it handles the actual Bitcoin backing its tokens. Now, the Bitcoin will be held in three different locations: the U.S., Singapore, and Hong Kong. This move is a partnership between BitGo and BiT Global, and it’s designed to make the system more secure by spreading control across multiple countries.
The new system uses a multisignature setup, which means any transaction requires two separate approvals. For users, nothing has changed with how WBTC works, though there have been some concerns about Justin Sun’s involvement in the project.
Sky Reconsiders Removing WBTC as Collateral
Sky, a decentralized lending platform, recently discussed whether to stop using WBTC as collateral. The concerns came from Justin Sun’s involvement, especially after some problems with transparency in one of his other projects, the stablecoin TrueUSD (TUSD).
In a vote on September 19, 88% of the community supported dropping WBTC. But after a discussion with BitGo’s co-founder Mike Belshe, who reassured the community about WBTC’s new custody setup, Sky is reconsidering that decision.
