Bitgo BiT Global Venture Established To Enhance The Custody Of $95 Billion WBTC

Key Points:

• BitGo and BiT Global have partnered to form a joint venture that will enhance the custody and cold storage of WBTC.
• The BitGo BiT Global venture will expand custody operations from the U.S. to include Hong Kong and Singapore.

BitGo and BiT Global have announced a strategic joint venture looking at further extensions of its custody and cold storage solutions for Wrapped Bitcoin, or WBTC.

Read more: BitGo Licence in Singapore Now Approved for Digital Token Services

BitGo BiT Global Venture for WBTC Custody Expansion

The deal also includes BitGo taking a minority stake in the new entity as part of this partnership. The BitGo BiT Global venture will help increase the security and geographical distribution of WBTC’s custodial practices, taping into BitGo’s established multi-signature and cold storage technologies.

Transitioning over a 60-day period, custody will be taken from the United States to include locations in Hong Kong and Singapore.

BiT Global will be the co-custodian of these assets, based in Hong Kong and regulated as a trust and corporate service provider. Conversely, despite these changes, both BitGo and BiT Global will work towards the same security protocols and key management strategies for the said period since 2019.

Justin Sun Addresses Community Concerns Over WBTC Management

Some concerns have been raised in the community concerning Justin Sun’s influence over the BitGo BiT Global venture. Sun clarified his involvement, saying he is just a strategic partner. He further commented that he doesn’t control WBTC private keys, and he assured everybody that audits are done in real-time with results on the WBTC network’s official website.

According to BitGo, the minting and governance of WBTC would work the same, in accordance with the custody procedures laid down. There are 155,000 WBTC circulating on Ethereum, amounting to nearly $9.5 billion. WBTC is an integral component of most DeFi protocols like Aave, Compound, and Maker.