Originally published on: October 09, 2024
Wrapped Bitcoin (WBTC), a tokenized version of Bitcoin existing on the Ethereum network, recently completed a shift to a geographically distributed custody structure. Under a partnership agreement between BitGo and BiT Global, the control of the underlying Bitcoin is now shared between Singapore, Hong Kong, and the United States.
This new custody structure utilizes a multisignature agreement, ensuring that two signatures are required to approve any transaction and move funds from the wallet. Despite concerns raised by some users regarding Justin Sun’s involvement in the custody arrangement, the transition to multi-jurisdiction custody has not impacted how Wrapped Bitcoin functions for users.
Initially facing scrutiny from the community, Sky proposed dropping WBTC as a collateral asset due to concerns over Sun’s alleged involvement. However, following reassurances from BitGo co-founder Mike Belshe, Sky is now reconsidering removing WBTC from the platform.
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