New token dubbed, “Wrapped Bitcoin (WBTC)” has just been launched on the Ethereum blockchain. WBTC. With a total of 26 partners and 15 decentralised autonomous organisation (DAO), WBTC is an ERC20 token that is backed 1:1 with Bitcoin.
WBTC was made possible through the partnership of decentralized exchange startups Kyber Network and Republic Protocol. BitGo, a cryptocurrency custody company serves as the token custodian that will ensure secure storage of WBTC as well as provide proof of assets for the token.
According to the BitGo blog, WBTC is the first asset-backed token with a transparent public dashboard. This allows anyone to validate the total circulation of WBTC and number of Bitcoin stored.
To facilitate cross-chain cryptocurrency trades, Ethereum blockchain users will be able to request WBTC from certified merchants provided they have passed the required anti-money-laundering and know-your-customer (AML/KYC) process. The WBTC team said that there are currently eight merchants ready to facilitate conversion between WBTC and BTC. These are AirSwap, Dharma, ETHfinex, GOPAX, KyberNetwork, Prycto, ren and Set Protocol.
Benedict Chan, CTO at BitGo wrote:
When we first announced WBTC, we expected that the token would create additional liquidity for decentralized exchanges. Since then, we’ve been thrilled to see other applications and use cases, from decentralized lending to collateralization and insurance — that can be built on top of this infrastructure even without our involvement.
What’s good about WBTC is the fact that it doesn’t require a special bridge, side chain or additional technology. Trading is easy through the use of existing Ethereum ERC20 wallet. WBTC works on a public blockchains such as Ethereum allowing participants globally to trade. The fact that it also facilitate the building of emergent technology and infrastructure that is interoperable with an existing ecosystem makes the project worthwhile and a boost to the cryptocurrency trading industry.,