Cryptocurrency custody provider BitGo has expanded its support for Wrapped Bitcoin (WBTC) by adopting LayerZero’s Omnichain Fungible Token (OFT) Standard. This move enables WBTC to function seamlessly across multiple blockchain networks, enhancing its usability and accessibility in decentralized finance (DeFi) ecosystems.
As of September 10, BitGo has deployed WBTC on both Avalanche and BNB Chain, with plans to extend its reach to additional networks in the future. Previously, WBTC was available on Ethereum, Base, Tron, and Polygon, but this latest rollout aims to further widen the scope of its deployment.
WBTC is a tokenized version of Bitcoin that allows users to leverage the value of BTC within DeFi applications for activities like trading, lending, and providing liquidity. Each WBTC token is backed 1:1 by Bitcoin. According to data at the time of writing, WBTC’s market capitalization sits at $8.8 billion.
Traditionally, assets like WBTC were constrained to single blockchain networks or relied on complicated bridges to move between them. By utilizing LayerZero’s OFT Standard, BitGo allows WBTC to operate under a unified framework that enables smooth interaction between blockchains, making transfers between networks as simple as sending an omnichain message.
BitGo will maintain control over all WBTC contracts and oversee its deployment on more than 80 chains. Transactions will be verified using a decentralized verifier network (DVN), ensuring a secure and transparent process.
This development follows BitGo’s recent decision to restructure WBTC custody into a multi-jurisdictional system, incorporating locations like Hong Kong and Singapore to mitigate geographic risks. While this transition aims to enhance security, some concerns have emerged over the involvement of third parties in the token’s storage.
In related news, Coinbase recently hinted at the possibility of launching its own wrapped Bitcoin token, potentially named “cbBTC.” This signals a growing interest in wrapped Bitcoin across various platforms, further expanding its role in the DeFi landscape.
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