365Crypto
BitGo Adopts New Standard for Wrapped Bitcoin
Crypto custodian BitGo is now using LayerZero’s Omnichain Fungible Token (OFT) Standard to make its Wrapped Bitcoin (WBTC) available across more than 80 blockchain networks. As of September 10, WBTC has been deployed on Avalanche and BNB Chain, with more networks to follow. Previously, WBTC was only available on Ethereum, Base, Tron, and Polygon.
What is Wrapped Bitcoin?
(WBTC) is a token that represents Bitcoin on other blockchains, allowing users to use Bitcoin’s value in decentralized finance (DeFi) activities like trading, lending, and providing liquidity. Each WBTC is fully backed 1:1 by Bitcoin. At the time of writing, WBTC had a market capitalization of $8.8 billion, according to CoinGecko.
Easier Cross-Chain Transactions
Traditionally, assets like WBTC were limited to a single blockchain or required complex bridges to transfer between chains. By using LayerZero’s OFT Standard, WBTC can now easily move across different blockchains. This means users can send WBTC between networks at a lower cost, paying only for an omnichain message.
BitGo’s Control and New Custody Structure
BitGo will maintain control over all WBTC contracts and manage the token’s deployment across over 80 blockchains. Transactions will be verified by BitGo’s decentralized verifier network (DVN). Recently, BitGo also transitioned its WBTC custody from a U.S.-based structure to a multi-jurisdictional system, adding Hong Kong and Singapore to reduce geographic risks.
Technical Terms
- Wrapped Bitcoin (WBTC): A token that represents Bitcoin on other blockchains, allowing it to be used in decentralized applications.
- Omnichain Fungible Token (OFT) Standard: A protocol that allows tokens to move between different blockchains efficiently.
- Decentralized Finance (DeFi): Financial services built on blockchain technology without intermediaries like banks.
- Decentralized Verifier Network (DVN): A system that verifies transactions using a network of independent verifiers.
