BitGo To Introduce Ethereum-Based Crypto Backed by Bitcoin

US crypto wallet provider BitGo has disclosed the creation of an ethereum (ETH)-based crypto token backed by Bitcoin (BTC) on 1:1 basis. The report indicates that Wrapped Bitcoin (WBTC) will offer users with a “wide variety of new decentralized use cases including on decentralized exchanges (DEXs), as collateral for stable coins or lending, for payments and flexible smart contracts within the Ethereum ecosystem.”

The briefing additionally indicates that big decentralized projects like kyber network, gnosis, makerdao, and others assist the launch of the new ERC-20 coin’s initial key real-world use case in january 2019. Describing the upcoming coin as a “transformational community effort,” BitGo stated that the planned token will offer the much needed “stability and value” to top cryptocurrencies such as Bitcoin, allowing businesses to use it without hesitation.

Bitgo explained that it introduced the new crypto currency with “full proof of reserve” subsequent to “significant institutional interest” in tokenization of assets such as commodities, securities and real estate . Furthermore, according to the statement, every Bitcoin on a dashboard with addresses and balances is considered, and users can check any Bitcoin stored in the blockchain that is available for monitoring via Etherscan.

In early September, BitGo acquired a government trust in South Dakota to become a certified crypto currency custodian bank. As a custodian, BitGo is subject to regulatory oversight in accordance with KYC and AML guidelines.