As a seasoned crypto investor with a knack for recognizing promising partnerships, I find the collaboration between BitGo and LayerZero particularly noteworthy. Having navigated the complexities of cross-chain interoperability and decentralized finance, I can appreciate the strategic move by BitGo to expand its Wrapped Bitcoin (WBTC) token to Avalanche and BNB Chain.
BitGo chose LayerZero as their official partner for providing interoperability solutions, specifically for the Wrapped Bitcoin token.
On September 10th, LayerZero (ZRO) disclosed that BitGo has adopted LayerZero’s Omnichain Fungible Token standard for their Wrapped Bitcoin (WBTC) operations. In addition to LayerZero, projects such as Swell, Ethena, and EtherFi are also utilizing this standard.
BitGo expands WBTC to BNB Chain and Avalanche
In 2019, BitGo along with its associates introduced Wrapped Bitcoin, a mission aimed at integrating Bitcoin (BTC) within the Decentralized Finance (DeFi) environment on Ethereum (ETH). This allows Bitcoin holders to leverage WBTC and interact with various decentralized finance applications such as lending, borrowing, exchange, and other services.
BitGo’s decision to adopt LayerZero is made as they broaden the reach of their Wrapped Bitcoin Token (WBTC), a significant player in the decentralized finance sector, across two additional blockchain platforms: Avalanche (AVAX) and Binance Smart Chain (BNB).
WBTC is already available on Ethereum, Tron, Base, Osmosis, and other networks. The latest integrations, BNB Chain and Avalanche, rank as the fourth and seventh largest chains by total value locked respectively as seen on DeFiLlama.
Native WBTC minting
As stated by LayerZero, BitGo’s adoption of the OFT Standard for Wrapped Bitcoin (WBTC) enables the token to be utilized and transferred seamlessly across various blockchain networks.
On compatible networks, users can directly create Wrapped Bitcoin (WBTC) tokens without encountering the risks linked to transferring tokens across chains through Ethereum bridging. Besides cross-chain functionality, benefits of using LayerZero for WBTC interoperability include a unified supply and modular security design.
In partnership with LayerZero, BitGo plans to establish its own decentralized verification system, known as the Decentralized Verifier Network (DVN). This network will be instrumental in validating every cross-chain Wrapped Bitcoin (WBTC) transaction that takes place. BitGo will work alongside Polyhedra and LayerZero Labs on the development of this DVN.
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2024-09-10 21:26