BitGo has selected LayerZero as the official digital asset custody provider interoperability provider for the Wrapped Bitcoin token.
On September 10, LayerZero (ZRO) announced that BitGo is now leveraging LayerZero’s Omnichain Fungible Token standard for the cryptocurrency company’s Wrapped Bitcoin (WBTC). Projects already leveraging OFT include Swell, Ethena, and EtherFi, among others.
BitGo Expands WBTC to BNB Chain and Avalanche
BitGo and its partners launched Wrapped Bitcoin in 2019 with the goal of integrating Bitcoin (BTC) into the DeFi ecosystem on Ethereum (ETH). BTC holders can use WBTC to access decentralized finance applications for lending, borrowing, trading, and other services.
BitGo’s selection of LayerZero comes as the company expands its WBTC token, a major asset in the decentralized finance space, to two other blockchain networks: Avalanche (AVAX) and BNB Chain.
WBTC is already available on Ethereum, Tron, Base, Osmosis, and other networks. The latest integrations, BNB Chain and Avalanche, rank as the fourth and seventh largest chains by total value locked, respectively, as shown by DeFiLlama.
WBTC Native Typing
According to LayerZero, BitGo’s choice of the OFT standard for WBTC allows for the token’s native use and transfer across multiple blockchains.
Users will be able to create WBTC natively on supported chains without facing the risks associated with bridging Ethereum tokens. In addition to omnichain composability, other benefits of using LayerZero for WBTC interoperability include unified supply and modular security.
As part of its collaboration with LayerZero, BitGo will implement its own decentralized validator network, which will play a key role in ensuring that every omnichain WBTC transaction is verified. BitGo will collaborate with Polyhedra and LayerZero Labs on the DVN.
