BitGo Launches Ethereum-based Wrapped Bitcoin For Providing Liquidity To dApps And DEXs
On 26th October, digital money company BitGo announced the introduction of WBTC. This is a controlled token developed on Ethereum blockchain technology.
Strength of Bitcoin
Bitcoin is said to have a lot of power in the cryptocurrency industry. The information on ERC20 token discloses that most bitcoin trades are executed on national exchanges. As a result, it affects the operations of the devolved exchanges as they experience low liquidity. Therefore, most of these exchanges do not participate in this market.
All these concerns should be addressed to ensure that there is a fair play in the market. WBTC has decided to solve the problem by providing high liquidity to distributed exchanges and Ethereum-based applications.
BitGo will offer safekeeping services for all bitcoins swapped as security and mint WBTC after getting approval from the community. The step helps to increase confidence in the use of cryptos as collateral in monetary institutions. BitGo's long-term objective is to ensure that cryptocurrencies are used for commercial transactions.
WBTC will be different from numerous Stablecoins in circulation. It has a full proof feature that guarantees the safety of transactions in the market. Most of the digital money markets do not have verifiable security. This creates a lot of concerns regarding the ability of crypto assets to be used as collateral in the borrowing of money.
A dashboard can be used to trace each bitcoin supporting a specific WBTC. As a result, it will show wallet reports and the corresponding balance. In this case, it is possible to trail every token using Etherscan.
Many Use Cases
The announcement demonstrates that WBTC might be used as security for other Stablecurrencies through a trusted and accountable asset type. The Ethereum system is also expected to offer crypto money lending models and satisfy disbursements for smart contracts.
The WBTC is expected to be launched in January next year. However, numerous devolved applications are ready to utilize the invention for various uses. Some of the entities that intend to use it comprise of Stablecurrency issuers and cryptocurrency lending platforms. Currently, some of the corporations that have shown interest are Dharma and MakerDAO. This information was readily available on BitGo’s online platforms.
The demand is for tokenization of assets like real estate, securities and commodities among institutional investors. WBTC offers an excellent opportunity to offer leadership that can lead to the growth of blockchain industry.
In the meantime, the firm trusts WBTC's prosperity can be utilized to make similar items and bolster resource tokenization. The discharge features the formation of a "computerized gold" token while alluding to its endeavors to make the Royal Mint Gold (RMG), a 2017 activity that saw BitGo band together with the U.K. Imperial Mint and Chicago Mercantile Exchange (CME) to change physical gold into an advanced resource.