KEYTAKEAWAYS
- BitGo announces strategic partnership with BiT Global for WBTC custody
- CEO Mike Belshe reassures about security and legal constraints on asset management
CONTENT
Mike Belshe addresses community apprehensions about the new WBTC joint venture, emphasizing robust security measures and legal safeguards. The CEO dismisses worries as a “nothingburger” while offering transparency to key stakeholders.
BitGo, a leading cryptocurrency custody firm, has recently announced a significant change in the ownership structure of Wrapped Bitcoin (WBTC), a popular token used in decentralized finance applications. The company is set to become a minority owner in a new joint venture with Hong Kong-based BiT Global, aiming to provide multi-jurisdictional custody for the WBTC business.
BitGo is pleased to announce the move of its WBTC business to the world’s first multi-jurisdictional and multi-institutional custody via a unique partnership and joint-venture with BiT Global.
This upgrade will occur 60 days from today with no disruption or interruptions to… pic.twitter.com/yNUoyTwsqL
— BitGo (@BitGo) August 9, 2024
This transition has sparked concerns within the crypto community, particularly due to the involvement of Justin Sun, the founder of Tron, known for his controversial reputation in the industry. In response to these apprehensions, BitGo CEO Mike Belshe has stepped forward to address the situation and allay fears.
In an exclusive interview, Belshe emphasized the robust security measures and legal frameworks in place. “The team at BiT Global managing customer accounts has a duty for safekeeping care. They can’t lend it out or arbitrarily give it to anyone without breaking laws,” he stated. Belshe also highlighted the continuation of existing attestation processes through wbtc.network.
Justin Sun echoed these sentiments in a social media post, clarifying that his involvement is purely strategic and that he does not control the private keys to the WBTC reserves.
Recently, I’ve heard that the community has some concerns about my involvement in various projects, including WBTC. I would like to clarify the following points:
There have been no changes to WBTC compared to before. The audits are conducted in real-time and can be accessed via…
— H.E. Justin Sun 孙宇晨 (@justinsuntron) August 10, 2024
While some community members have proposed alternatives or suggested caution, Belshe argued that decentralized options might carry their own risks. He pointed out the unique legal constraints of their construct as a key differentiator and safety measure.
Addressing concerns from platforms like Maker DAO, Belshe expressed willingness to assist with due diligence. “These guys are asking good questions. They should figure out how to do good diligence,” he said, predicting that upon closer examination, people would realize the situation is “a big nothingburger.”
As the crypto industry watches this transition closely, BitGo’s commitment to transparency and security remains at the forefront of discussions surrounding the future of WBTC.
>> Also read: TRX: The Key of TRON’s Ecosystem
