- BitGo will provide custody for the bitcoin-backed altcoin
- BitGo says WBTC holders will utilize it in a wide array of scenarios including payments, smart contracts and more
- The firm claims WBTC is tokenized with full proof of reserve, backed 1:1 with bitcoin
BitGo, a California-based distributed ledger technology (DLT) security company and multisignature bitcoin wallet service provider, has launched Wrapped Bitcoin (WBTC) , an Ethereum-based token backed by Bitcoin to bring the stability and value of the world’s flagship cryptocurrency to the Ethereum ecosystem, according to a press release by the firm on October 26, 2018.
A First of its Kind ERC-20 Token Backed By Bitcoin
As stated in its press release, BitGo has launched Wrapped Bitcoin (WBTC), an ERC-20 digital asset that brings Bitcoin to the Ethereum ecosystem of decentralized applications (dApps).
According to the BitGo team, WBTC provides hodlers with a vast array of decentralized use cases including payments, flexible smart contracts on the Ethereum network, can be used as collateral for stable coins or lending and other excellent use cases that would go live in January 2019.
The WBTC use cases are powered by notable decentralized blockchain projects including MakerDAO , Gnosis, Kyber Network, Republic Protocol and more.
WBTC Backed 1:1 With Bitcoin
“Every Bitcoin will be accounted for on a dashboard displaying addresses and balances, and users will be able to verify on the blockchain each Bitcoin that is held in custody,” declared BitGo.
In a bid to avoid the kind of controversies that have plagued digital assets such as Tether (USDT) , BitGo says every bitcoin in its reserve will be appropriately accounted for, as there will be a dashboard displaying wallet addresses as well as BTC balances, allowing community members to verify the data on the blockchain.
In essence, at every point in time, users will be able to compare the total number of bitcoin in BitGo’s reserves, with the total supply of WBTC in circulation by simply using a blockchain explorer like Etherscan .
Importantly, BitGo strongly believes that this kind of setup fosters trust and transparency, an essential element in the blockchain ecosystem.
Established in 2013 by Mike Belshe and Ben Davenport, BitGo is one of the most credible blockchain firms in the world dedicated to spreading the gospel of cryptos across the globe.
Earlier in September 2018, Blockchain Reporter informed that BitGo had received approval for its cryptocurrency custodial services from the South Dakota regulators.
In related news, this October, Blockchain Reporter informed that Goldman Sachs and Mike Novogratz’s Galaxy Digital have pumped in $15 million into BitGo, to enable the firm to solidify its business.