30s Summary

BitGo and BiT Global have assumed shared custody of Wrapped Bitcoin (WBTC) across the US, Hong Kong, and Singapore. Transactions now require two signatures — a move to prevent singular control over WBTC. Despite the decentralized asset’s founder Justin Sun’s involvement causing uncertainty, decentralized lending platform Sky did not drop WBTC as a collateral asset. Sky had proposed the move but, after talking to BitGo co-founder Mike Belshe, they voted to keep WBTC. For WBTC users, no substantial changes were made.

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Wrapped Bitcoin (WBTC) is a special version of Bitcoin that lives on the Ethereum network. If you have 1 WBTC, you can swap it for 1 normal Bitcoin (BTC). Now, the management of these Bitcoins has been spread across Singapore, Hong Kong, and the US, thanks to a partnership between BitGo and BiT Global.

This new system needs two signatures to approve transactions or moving funds from the wallet. With this change, BiT Global assures that no single country or entity has full control over WBTC’s holdings.

Despite this, nothing much has changed for normal users of WBTC. But there were a few raised eyebrows due to Justin Sun’s involvement in the new custody arrangement.

Sky, a decentralized lending platform, previously known as Maker, was the first to suggest dropping WBTC as a collateral asset. This was because of Justin Sun’s supposed involvement in the project. The Sky community eventually voted and 88% agreed to stop using WBTC as collateral.

Despite this, Sky decided to reconsider its decision to remove WBTC after having a chat with Mike Belshe, co-founder of BitGo, who was able to address and calm down the concerns of the community about the new custody arrangement.

Source: Cointelegraph