Cryptocurrency custody platform BitGo has adopted LayerZero’s Omnichain Fungible Token (OFT) Standard for its Wrapped Bitcoin (WBTC), enabling the asset to operate across multiple blockchain networks.
According to a Sept. 10 announcement, BitGo is deploying WBTC on Avalanche and BNB Chain as part of the rollout, with more chains to be included. Prior to this advanced rollout, WBTC was available on networks such as Ethereum, Base, Tron, and Polygon.
Wrapped Bitcoin (WBTC) is a tokenized version of Bitcoin (BTC) that allows holders to use BTC value in decentralized finance (DeFi) applications for trading, lending, and liquidity. Each WBTC is backed 1:1 by Bitcoin. According to data from CoinGecko, the token’s market capitalization was $8.8 billion at the time of writing.
Source: CoinGecko
Traditionally, assets like WBTC are limited to operating on a single blockchain or rely on complex bridges to move between chains. By using LayerZero’s OFT Standard, BitGo’s WBTC token can operate under a standardized framework that allows tokens to communicate the same way across blockchains.
For users, it means sending WBTC between chains for just the price of an omnichain message.
Related: BitGo CEO argues wBTC security is unchanged amid concerns
As per the announcement, BitGo will maintain ownership of all WBTC contracts and control the native deployment of WBTC, which can now be extended to more than 80 chains. Transactions will be verified through a proprietary decentralized verifier network (DVN).
This move comes just a few weeks after BitGo announced the transition of WBTC custody to a multi-jurisdictional and multi-institutional structure. Previously based solely in the United States, its custodial operations now include Hong Kong and Singapore.
According to the company, the change was intended to reduce geographic risks. However, the involvement of third parties, such as BiT Global and the Tron ecosystem, raised concerns over additional risks to the tokens’ storage.
In August, crypto exchange Coinbase also hinted at the possible launch of its own wrapped Bitcoin token called “cbBTC.”
Magazine: How Chinese traders and miners get around China’s crypto ban