Ritika Janiya
BitGo is shifting business around Wrapped Bitcoin (WBTC) into a worldwide custody system. They are looking to make security enhancements by adding new locations like Hong Kong and Singapore, which will be the first to allow for multi-jurisdictional custody of WBTC, allowing for more corporate investors.
A big move by BitGo, the cryptocurrency management company, will address the Wrapped Bitcoin issue. This change is all about boosting security and amplifying its reach worldwide.
As of now, the Wrapped Bitcoin is deposited in the United States only. However, the big update came on August 9, with an announcement from BitGo that it will initiate a 60-day transition to start diversifying the locations of its treasury across the world. This move includes new locations like Hong Kong and Singapore.
What is Wrapped Bitcoin? It is a digital form of tokenized asset containing the representation of Bitcoin placed on the Ethereum network, offering an easier way to interact with Bitcoin across all Ethereum services and exchanges. Or, in other words, it is wrapping up bitcoin in Ethereum-compatible mechanisms.
BitGo is excited about this change because it will make their service the first of its kind to use “multi-jurisdictional and multi-institutional custody.” That means their security measures will be spread out across different countries and institutions. They do so through a special partnership with BiT Global that will strengthen how they protect the Bitcoins they manage.
This big change will still see BitGo using the exact same security technology, including “multi-signature technology” and “deep cold storage.” Multi-signature means that more than one key is needed to access the Bitcoin, hence it is secure. Deep cold storage is a manner of keeping it offline and away from hackers.
Security keys will be spread over different parts of the world under their new setup. That way, if one area is subject to security risk, one part of one’s Bitcoin hoard is still kept safe. BitGo is assuring this will be a seamless and very transparent transition and plans to finish the process by October 8.
A great part of this update includes Tron Network and its founder, Justin Sun. The CEO of BitGo, Mike Balshe said, “Justin Sun will be involved with the project but they won’t have the ability to move some of the funds”. This part is very notable as conferred currently; Justin Sun is reportedly being sued by the U.S. Securities and Exchange Commission (SEC).
The SEC’s lawsuit of March 2023 accused Sun among others of several illegal activities with respect to the Tron cryptocurrency. The SEC claims that Sun manipulated trading and hyped Tron and BitTorrent with the help of celebrities like Soulja Boy and Lindsay Lohan.
In response, Tron has asked a court to dismiss the lawsuit, arguing that the SEC is overstepping its bounds by trying to regulate actions that take place outside of the U.S. MAINLY.
The legal bumps notwithstanding, BitGo is charging full steam ahead with its plans. It believes that the new direction taken will be a new standard in the security of cryptocurrencies. By dispersing their operations across locations, it hopes to make its Wrapped Bitcoin service safer and more reliable.
So, in a nutshell, the global custody system for Wrapped Bitcoin is a huge stride for BitGo. It is meant to make their service more secure by using multiple world locations. Now, with the added involvement of Tron and Justin Sun, this really will have an impact on the way digital assets are managed and, most importantly, protected efficiently.
