BitGo has selected LayerZero as the official interoperability provider for the digital asset custody provider for the Wrapped Bitcoin token.
On September 10, Layer Zero (ZRO) It was announced BitGo now uses LayerZero’s Omnichain Fungible Token standard for the crypto firm’s Wrapped Bitcoin (WBTC). Projects already taking advantage of OFT include Swell, Ethena, EtherFi, and more.
BitGo Expands WBTC to BNB Chain and Avalanche
BitGo and its partners launched Wrapped Bitcoin in 2019 with the goal of bringing Bitcoin (BTC) to the DeFi ecosystem on Ethereum (ETH). BTC holders can use WBTC to access decentralized finance applications via lending, borrowing, swapping, and other services.
BitGo’s choice 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 4th and 7th in total value locked respectively as shown by DeFiLlama.
Minting of the original WBTC coin
According to LayerZero, BitGo’s choice of the OFT standard for WBTC allows for native use of the token and its transfer across multiple blockchains.
Users will be able to mint WBTC natively on supported chains without the risks associated with pegging tokens from Ethereum. Aside from the ability to form multiple chains, other benefits of using LayerZero for WBTC interoperability include unified supply and modular security.
As part of the collaboration with LayerZero, BitGo will implement its own decentralized validation network, which will play a key role in ensuring that every WBTC multi-chain transaction is validated. BitGo will partner with Polyhedra and LayerZero Labs on the DVN.