BitGo to Shift Wrapped Bitcoin Operations to Multi-Jurisdictional Custody

BitGo is set to enhance the security of its Wrapped Bitcoin operations by transitioning to a multi-jurisdictional and multi-institutional custody framework.

Expansion of Custodial Operations

Currently, BitGo’s Wrapped Bitcoin (WBTC) custody services and cold storage are exclusively located in the United States. However, as of August 9, the company announced a 60-day plan to broaden its custodial capabilities to include additional jurisdictions such as Hong Kong and Singapore.

Wrapped Bitcoin serves as a bridge between Bitcoin and Ethereum-based decentralized finance (DeFi) protocols, allowing interaction with various decentralized exchanges (DEXs).

Innovative Custody Solution

BitGo has claimed that this transition will establish it as the world’s first multi-jurisdictional and multi-institutional custody solution, facilitated through a collaborative effort with BiT Global.

The platform reassured users that it will maintain its existing multi-signature technology and deep cold storage protocols. The new structure will allow for the distribution of security keys across various global locations, mitigating risks associated with a single point of failure.

The transition process is expected to be “frictionless and transparent,” with a target completion date of October 8. BitGo’s CEO emphasized the collaboration with the Tron Network and its founder, Justin Sun, during the development of this transition.

Partnership with Tron and Justin Sun

BitGo’s CEO, Mike Belshe, confirmed the collaboration involving BitGo, Justin Sun, and the Tron ecosystem in a recent update. He clarified that Justin Sun will not have the authority to manage funds related to this venture, a statement made in light of the ongoing legal proceedings initiated by the US Securities and Exchange Commission (SEC).

In April 2024, it was reported that Tron sought to dismiss the SEC lawsuit, asserting that the regulatory body was focusing on “predominantly foreign conduct.”

Additionally, the SEC filed a civil lawsuit against Justin Sun, the Tron Foundation, the BitTorrent Foundation, and Rainberry, alleging that they engaged in the unregistered offering and sale of crypto asset securities, as well as manipulative trading practices aimed at boosting public interest in TRX and BitTorrent (BTT).

For further details, access the full announcement on the BitGo blog.