Wrapped Bitcoin (WBTC), the largest tokenized form of bitcoin used in DeFi, is undergoing a major change in how its underlying BTC is custodied. BitGo, which has historically been the sole custodian holding the bitcoin that backs WBTC, announced on August 9 that it will transition WBTC custody into a multi-jurisdictional, multi-institutional joint venture involving BitGo and Hong Kong–based custodian BiT Global, framed as a strategic partnership with Justin Sun and the Tron ecosystem. Under the new setup, the bitcoins backing WBTC will no longer be held exclusively in the United States, but instead split across jurisdictions including Hong Kong and Singapore. Initially, BitGo’s plan involved shifting one of the keys to the multi-signature wallet that controls the BTC backing WBTC to BiT Global, with BitGo retaining the other two keys. Community backlash focused on perceived governance and counterparty risks from Sun’s association with the joint venture and the prospect of Sun-linked entities gaining too much influence over WBTC’s reserves, prompting risk discussions at protocols like MakerDAO. In response, BitGo quickly revised the model so that the three keys will be held by three separate institutions—BitGo Inc. (US), BiT Global (Hong Kong), and BitGo Singapore—maintaining a 2-of-3 multisig while spreading control across more entities and jurisdictions. BitGo and Justin Sun have both stressed that Sun’s role is described as strategic only, that he does not control WBTC private keys, and that the underlying cold-storage security model and proof-of-reserves transparency remain unchanged.

AI-generated background, compiled from web sources — not editorial content.

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