Cryptocurrency custody platform BitGo is preparing to transfer its Wrapped Bitcoin business to a multi-jurisdictional, multi-institutional custody framework to enhance its security measures.
BitGo Wrapped Bitcoin (WBTC) custody and cold storage are currently in the U.S. However, as of an Aug. 9 statement, the company has initiated a 60-day transition to expand its custodial locations to include Hong Kong and Singapore. Specifically, WBTC represents Bitcoin and allows users to interact with Ethereum-based decentralized finance protocols and decentralized exchanges.
BitGo confirms the use of the same multi-sig technology
BitGo claimed that transitioning its WBTC business will make it “the world’s first multi-jurisdictional and multi-institutional custody platform” through a joint venture with BiT Global. Furthermore, the platform will maintain its multi-signature technology and deep cold storage, with keys now distributed globally, in order to reduce the risk of a single point of failure.
The transition is expected to be frictionless and transparent, with completion by Oct. 8. In addition, BitGo’s CEO highlighted the involvement of Tron Network and its founder, Justin Sun, in the development.
Justin Sun and Tron’s involvement
BitGo CEO Mike Belsche announced in an Aug. 10 X post that the collaboration for this joint venture involves Justin Sun, BitGo, and the Tron ecosystem while clarifying that Sun won’t control the funds. Notably, this comes amid the ongoing lawsuit against him by the U.S. Securities and Exchange Commission.
In Mar. 2023, the SEC sued Sun, the Tron Foundation, BitTorrent Foundation, and Rainberry for unregistered sales, market manipulation, and unlawful promotion of Tron as a crypto asset. Moreover, the financial regulator alleged Sun used manipulative trading to boost TRX and BitTorrent, with help from celebrities like Akon, Lindsay Lohan, Jake Paul, and Soulja Boy.
