BitGo to Transition WBTC Custody with BiT Global, Involving Justin Sun; Solana Holders Concerned

Aug 10, 2024, 07:28 PM

BitGo has announced a significant transition for its Wrapped Bitcoin (WBTC) business, moving to a multi-jurisdictional and multi-institutional custody model through a partnership with BiT Global. This transition, set to occur in 60 days with no disruption to service, involves relocating custody from the US to Hong Kong and Singapore. The joint venture includes notable involvement from Justin Sun, whose role is strategic, and the Tron ecosystem. This shift has raised concerns among stakeholders, including MakerDAO, which is considering offboarding WBTC due to the change in custody arrangements. Solana holders, with $108M in WBTC, are also concerned about potential risks. The move aims to enhance security and decentralization, but it has also sparked debates about counterparty risks associated with WBTC compared to alternatives like tBTC.