BitGo wraps and deploys BTC on Avalanche and BNB Chain.
Cryptocurrency custodial platform BitGo has adopted the LayerZero Omnichain Fungible Token (OFT) Standard for its Wrapped Bitcoin (WBTC), which enables the asset to function on multiple blockchain networks.
According to the September 10 announcement, BitGo WBTC is being deployed as part of the release on Avalanche and BNB Chain, with additional chains to be included. Prior to this advanced release, WBTC was available on networks such as Ethereum, Base, Tron and Polygon.
Wrapped Bitcoin (WBTC) is an alternative version of Bitcoin (BTC), which allows holders to use BTC value for trading, lending and liquidity in decentralized finance (DeFi) applications. Every 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. Using the LayerZero OFT standard, BitGo's WBTC token can operate under a standardized framework that allows tokens on blockchains to communicate in the same way.
For users, it means sending WBTC between chains in omnichain message value only.
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According to the announcement, BitGo will take ownership of all WBTC contracts and control the native distribution of WBTC, which can now be extended to more than 80 chains. Transactions are verified through a proprietary Decentralized Validation Network (DVN).
This move comes a few weeks after BitGo announced the transition of WBTC custody to a multi-jurisdictional and multi-institutional structure. Previously based only in the United States, its regulatory operations now include Hong Kong and Singapore.
According to the company, the change is intended to reduce geographic risks. However, the involvement of third parties such as Bit Global and the Tron ecosystem has raised additional concerns over the storage of tokens.
In August, crypto exchange Coinbase hinted at the possible launch of its own proprietary Bitcoin token called “cbBTC.”
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