Originally published on: September 10, 2024
BitGo, a leading cryptocurrency custody platform, has taken a significant step by embracing LayerZero’s Omnichain Fungible Token (OFT) Standard for its Wrapped Bitcoin (WBTC). This move enables the seamless operation of the asset across various blockchain networks, expanding its reach and utility.
As per the recent announcement on Sept. 10, BitGo is launching WBTC on Avalanche and BNB Chain as part of its initial deployment, with plans to include more chains in the future. Previously, WBTC was accessible on networks such as Ethereum, Base, Tron, and Polygon.
Wrapped Bitcoin (WBTC) serves as a tokenized version of Bitcoin that empowers holders to leverage BTC value in decentralized finance (DeFi) applications for trading, lending, and liquidity purposes. Backed 1:1 by Bitcoin, the token boasts a market capitalization of $8.8 billion as per CoinGecko data.
Conventionally, assets like WBTC are restricted to functioning on a single blockchain or necessitate intricate bridges for inter-chain transfers. However, with the adoption of LayerZero’s OFT Standard, BitGo’s WBTC token can now operate within a standardized framework, facilitating seamless communication across blockchains.
For users, this means the ability to transfer WBTC between chains at the cost of an omnichain message, offering unparalleled flexibility and efficiency in asset management.
In addition to this development, BitGo retains ownership of all WBTC contracts and oversees the native deployment of WBTC on over 80 chains. Transactions are verified through a proprietary decentralized verifier network (DVN), ensuring security and transparency.
Notably, this milestone comes on the heels of BitGo’s recent shift in WBTC custody to a multi-jurisdictional and multi-institutional structure, spanning locations in the United States, Hong Kong, and Singapore. This strategic move aims to mitigate geographic risks associated with custody, enhancing the resilience and robustness of the platform.
Looking ahead, the future looks promising for BitGo as it continues to spearhead innovations in cryptocurrency custody and blockchain interoperability. Stay tuned for more updates on this groundbreaking development!