Originally published on: August 11, 2024
BitGo, a leading cryptocurrency custody platform, is making a strategic move to transition its Wrapped Bitcoin business to a multi-jurisdictional and multi-institutional custody structure. This shift aims to bolster security measures for its operations.
Currently, BitGo’s Wrapped Bitcoin (WBTC) custody and cold storage operations are centered in the United States. However, in an announcement on August 9th, the company revealed its plans to diversify its custodial locations to include Hong Kong and Singapore within a 60-day transition period.
WBTC represents a unique asset as it enables users to interact with Ethereum-based decentralized finance protocols and exchanges seamlessly. By transitioning its WBTC business, BitGo aims to establish itself as the world’s first provider of multi-jurisdictional and multi-institutional custody through a strategic partnership with BiT Global.
Despite the transition, BitGo reassured users that it will maintain its high security standards using multi-signature technology and deep cold storage. By distributing keys across various locations globally, the risk of a single point of failure is significantly reduced. The company emphasized that the transition process will be seamless and transparent, with completion expected by October 8th.
Notably, BitGo’s CEO, Mike Belsche, highlighted the involvement of Tron Network and its founder, Justin Sun, in this new development. Belsche confirmed that Sun’s role in the joint venture will not grant him the ability to move funds, addressing ongoing legal issues between Sun and the United States Securities and Exchange Commission.
In related news, Tron is currently facing a lawsuit filed by the SEC over allegations of unregistered offerings and manipulative trading practices. The outcome of this legal battle has significant implications for the future of the Tron ecosystem.
As BitGo embarks on this transition to a multi-jurisdictional custody model, the industry eagerly anticipates the impact of this move on the broader cryptocurrency landscape. Stay informed with our Crypto Biz newsletter for weekly updates on key business trends in blockchain and crypto. Subscribe now to gain valuable insights and stay ahead in this dynamic market.