BitGo Partners with Justin Sun and TRON to Expand WBTC Custody

Custodial platform BitGo has expanded the jurisdictions for storing bitcoin used in Wrapped Bitcoin (WBTC) to Singapore and Hong Kong. This development follows a strategic partnership with TRON-affiliated firm BiT Global.

BitGo is pleased to announce the move of its WBTC business to the world’s first multi-jurisdictional and multi-institutional custody via a unique partnership and joint-venture with BiT Global.

This upgrade will occur 60 days from today with no disruption or interruptions to… pic.twitter.com/yNUoyTwsqL

— BitGo (@BitGo) August 9, 2024

BiT Global is a global custodial platform with regulated operations, based in Hong Kong and registered as a provider of trust and company services.

The initiative aims to transition the business into a “multi-jurisdictional and multi-institutional custody.” 

BitGo will be a minority shareholder in the joint venture. Initially, the digital gold for token issuance was locked only in the United States.

“The upgrade will occur in 60 days without any service disruptions or interruptions,” the company assured.

The new solution will employ the same multi-signature and deep cold storage technologies used since 2019. The difference will be the ability to distribute private keys across multiple jurisdictions.

BitGo and BiT Global have pledged to maintain maximum transparency and continue providing real-time proof of reserves via their website.

“The vast majority of WBTC users are already in Asia, where BitGo is actively expanding its regulated presence in Korea and Singapore,” explained BitGo CEO Mike Belshe.

Concerns Surrounding Sun

Justin Sun’s involvement has raised certain concerns within parts of the community.

Risk management firm BA Labs warned of an “elevated level of risk.” Experts noted that projects associated with the founder of TRON Foundation have faced issues with operational activities and transparency.

In a message on the MakerDAO forum, BA Labs proposed closing all new borrowings against WBTC collateral and preventing additional ones during the upcoming vote on August 12.

In response, Belshe urged focusing on facts rather than Sun’s persona. The top executive emphasized that the underlying WBTC protocols are not at risk. They will remain “the same as today,” added BitGo’s CEO.

“The company still signs all transactions using the same technology as always. BitGo will not sign a transaction that does not have the corresponding issuance or burning of a token. Merchants still exist. Thus, the risk remains with the treasury itself, whose keys are now divided among parties in a way that has never been done before,” he explained.

Sun’s Response

Justin Sun also responded to the community’s concerns. He reiterated Belshe’s words about “no changes” and emphasized that the partnership does not grant him direct access to the funds.

Recently, I’ve heard that the community has some concerns about my involvement in various projects, including WBTC. I would like to clarify the following points:

There have been no changes to WBTC compared to before. The audits are conducted in real-time and can be accessed via…

— H.E. Justin Sun 孙宇晨 (@justinsuntron) August 10, 2024

“My personal involvement in WBTC is purely strategic. I do not control the private keys to the WBTC reserves and cannot move the bitcoin reserves,” he assured.

According to CoinGecko, the token’s market capitalization is $9 billion. At the time of writing, it maintains its peg to the underlying asset.  

Previously, Web3 entrepreneur Vladimir Menaskop shared data from a large-scale study of over 50 cross-chain bridges with ForkLog readers.