Mike Belshe, BitGo CEO, took the opportunity of an online discussion to emphasize the security of the Bitcoin (BTC) backing its wBTC token, which allows users to use the leading cryptocurrency on other blockchains beyond the original Bitcoin network.
In an X Space discussion, Belshe reaffirmed that Tron founder Justin Sun has no access to the crypto custodian’s asset keys.
MakerDAO drops wBTC over BiT global control concerns
Belshe’s reassurance followed MakerDAO’s decision to eliminate its exposure to wBTC, driven by concerns that a proposal to share custody with BiT Global, partially controlled by Justin Sun, would concentrate too much control in BiT Global’s hands.
In the discussion, Belshe noted that BitGo would split the keys between its U.S. and Singapore entities, as well as BiT Global. He said that no single party could mint or take from the underlying treasury.
Additionally, Mike Belshe explained that the company is designed as a public holding company in Hong Kong, with a legal responsibility to protect customer assets. According to local laws, no individual can hold more than 20% of the company.
MakerDAO pauses new wBTC loans as Coinbase eyes cbBTC launch
MakerDAO’s decision, which becomes executable after 13:24 UTC on Aug. 15, aims to halt the organization from using its wBTC vaults for liquidity. While it will stop further borrowing from these vaults, existing positions will remain intact.
Moreover, data from Dune indicates that wBTC remains stable, with no noticeable change in the volume of redemptions or burns of wBTC for Bitcoin as users explore alternatives. On Wednesday, crypto exchange Coinbase suggested it may develop its own wrapped version of BTC, cbBTC.
