Wrapped Bitcoin completes shift to multi-jurisdiction custody

Wrapped Bitcoin (CRYPTO:WBTC), a tokenised version of Bitcoin (CRYPTO:BTC) with a market capitalisation of $9.5 billion and a circulating supply of 154,782 tokens, has successfully transitioned to a multi-jurisdictional custody structure. 

This shift involves distributing the control of underlying Bitcoin across Singapore, Hong Kong, and the United States, in a partnership between BitGo and BiT Global.

Under the new arrangement, WBTC custody operates using a multisignature system, requiring two signatures to authorise transactions. 

According to BiT Global, this geographically distributed approach ensures that no single entity or jurisdiction holds complete control over the WBTC assets. 

This structure is intended to enhance security and operational transparency.

The change in custody raised some concerns among users, particularly about the involvement of Justin Sun, given his previous connection to TrueUSD (CRYPTO:TUSD), a stablecoin that experienced operational issues. 

Despite these concerns, the transition has not altered WBTC's functionality for users.

In a related development, the decentralised lending platform Sky (CRYPTO:SKY), formerly known as Maker, had proposed dropping WBTC as a collateral asset due to Sun’s perceived involvement. 

The Sky community expressed worries over transparency and operational challenges seen in other projects tied to Sun. 

A vote on September 19 resulted in 88% support for removing WBTC from the platform.

However, following discussions with BitGo co-founder Mike Belshe, Sky is reconsidering its decision. 

Belshe addressed concerns about the new custody structure, alleviating fears within the community about WBTC's security and operational integrity under the multi-jurisdictional custody system.

At press time, the Wrapped Bitcoin price was $60,270.07.