Digital currency custody company, BitGo and decentralised exchange startups Republic Protocol and Kyber Network have revealed the planned launch of a fully backed Bitcoin ERC20 token on the Ethereum ecosystem. Dubbed as ~Wrapped Bitcoin and aimed for Q1 net year launch, the new token will be backed by Bitcoin on a 1:1 ratio, the three founding companies revealed in a joint press release last week. The CEO and co-founder of Kyber Network, Loi Luu spoke on the matter and has said:
“This initiative will be bringing together the liquidity of Bitcoin and the extensive smart contract developer ecosystem of Ethereum. Applications on Ethereum such as decentralized exchanges and financial protocols will all be able to use Bitcoin seamlessly, creating bitcoin trading pairs which have been impossible until now. At the same time, the usage of Bitcoin will be expanded by having more decentralized use cases, such as exchange, loans, token payments.”Several decentralised exchanges and financial projects are participating in the project as launch members have committed to support the adoption of Wrapped Bitcoin. This includes Dharma, Airswap, IDEX, DDEX, MakerDAO, Hydro Protocol, Ptycto and Set Protocol. To add the initial liquidity to the project, Kyber and Republic will pre-mint some Wrapped Bitcoin tokens from their own stash of Bitcoin and make the coins available to the users through Atomic Swap. According to CryptoVest, “BitGo will act as the primary custodian in charge of holding the BTC reserves. Back in September, the US-based blockchain security company received public trust company status from the South Dakota Division of Banking, allowing it to operate as a ‘regulated’ custody for institutional investors.” Explaining the soon to be released coin as a transformational community effort according to BitGo who said this in a different statement last week. The launch of Wrapped Bitcoin is following a significant institutional interest in tokenisation of assets like commodities, real estate and securities. In the markets today, Bitcoin is down by almost a percent at the current time of writing according to CoinMarketCap. The leading digital currency is worth $6,407 and has a market cap of over $111 billion. What are your thoughts? Let us know what you think down below in the comments!