As a seasoned crypto investor with over a decade of experience navigating the volatile digital asset landscape, I find the recent developments surrounding BitGo’s Token Management platform and its partnership with 21Shares particularly intriguing.
BitGo, a digital asset custody provider, has introduced a novel solution that they claim will revolutionize how protocols handle token storage, distribution, and liquidation.
As reported by BitGo, their Token Management platform provides an automated system that can be utilized by protocols and organizations to simplify the management of their digital assets. Notably, this service is currently being used advantageously by leading protocols like Worldcoin (WLD), Sui (SUI) and LayerZero (ZRO), as stated in a press release from BitGo which was shared with crypto.news on September 16th.
Instead of managing separate systems for each stakeholder, projects could opt for an integrated approach that handles tasks like token vesting, liquidity control, token releases, and on-chain activities like staking under a unified solution.
BitGo claims that their solution empowers projects to leverage a compliant, insured service, bridging the gap between their high-standard custody services and the currently disjointed market.
21Shares picked BitGo for ETFs custody
A few days ago, the debut of the all-in-one crypto asset management system took place, following the decision by 21Shares, a provider of digital asset exchange-traded funds, to appoint BitGo as custodian for their U.S. Spot ETFs. More precisely, BitGo will assume the role of custodian for both the 21Shares ARK Bitcoin ETF and the Core Ethereum (ETH) ETF managed by 21Shares.
2024 saw the debut of both ARKB and CETH, which followed the U.S. Securities and Exchange Commission’s green light for Bitcoin ETFs in January (for trading) and Ethereum ETFs in July.
21Shares announcement expands BitGo’s role within the cryptocurrency Exchange-Traded Fund (ETF) sector, offering custody services for both Hashdex and Valkyrie crypto ETFs.
WBTC and launch of competing tokens
In addition, BitGo manages Wrapped Bitcoin (WBTC), a token linked to Bitcoin (BTC) that enables those who hold Bitcoin to engage in Decentralized Finance (DeFi).
Recently, WBTC has attracted some negative attention.
Based on BitGo’s announcement, they are expanding their custody of Wrapped Bitcoin (WBTC) in collaboration with BIT Global, a Hong Kong company connected to Justin Sun, the founder of Tron (TRX). Previously, Sky, formerly known as MakerDAO, contemplated withdrawing support for WBTC due to this issue. Meanwhile, Coinbase hinted at launching its own product before eventually debuting cbBTC.
Interestingly, 21Shares also announced its own wrapped Bitcoin dubbed 21BTC.
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2024-09-16 19:46