Crypto wallet and blockchain security firm BitGo has announced the development of a Ethereum-based coin backed by bitcoin. This Wrapped Bitcoin (WBTC) is supposed to provide users with ‘a wide variety of new decentralized use cases including on decentralized exchanges, as collateral for stable coins or lending, for payments and flexible smart contracts within the Ethereum ecosystem’. This was revealed by BitGo on a blog post.
The Wrapped Bitcoin will launch on the bigger decentralized exchanges in January 2019. The upcoming Ethereum-token is already supported by Kyber Network, Gnosis, MakerDAO and other platforms.
Every bitcoin will be accounted for. BitGo will have a dashboard displaying addresses and balances. Users are able to verify each of the bitcoins by monitoring them on blockchain explorers like Etherscan.
In September BitGo acquired a state trust company charter in South Dakota to become a certified crypto custodian. This makes BitGo subject to regulatory oversight as it needs to apply KYC and AML policies.