Ethereum-Based ‘Wrapped’ Token Backed by Bitcoin Launches

After the announcement of its improvement in October 2018, Wrapped Bitcoin, an Ethereum-based token backed by Bitcoin, has launched.

Wrapped Bitcoin (WBTC), an Ethereum (ETH)-based token backed by Bitcoin (BTC), has launched as we speak, Jan. 31, in keeping with a press launch on the community’s web site. The foreign money is a joint initiative by blockchain safety agency BitGo, Kyber Network liquidity protocol and others.

BitGo introduced the event of the coin backed 1:1 with Bitcoin in October 2018. An announcement by the agency then mentioned that Wrapped Bitcoin will present customers with a “extensive number of new decentralized use instances together with on decentralized exchanges (DEXs), as collateral for stablecoins or lending, for funds and versatile smart contracts throughout the Ethereum ecosystem.”

WBTC is an ERC-20 token, that are tokens designed and used solely on the Ethereum platform that make the streamline the creation of recent tokens. ERC-20 tokens present a kind of template by which builders can construct a brand new token, sparing them from coding a brand new crypto from the bottom up.

Wrapped Bitcoin will purportedly enable for brand new functions and use instances for Bitcoin on the Ethereum community. A press launch from the WBTC community states that “By bringing Bitcoin’s liquidity to Ethereum, WBTC additionally makes it doable for merchants to make use of Bitcoin worth for token trades on decentralized exchanges.”

The press launch additionally says that every one WBTC smart contracts have been audited by third-party companies. It additional states that proof of reserve exhibiting an actual 1:1 ratio of minted WBTC to BTC is observable on-chain.

Pricing information for WBTC is now out there on CoinMarketCap. At press time, the coin is trading at  $3,504.98, which is barely greater than Bitcoin, which is trading at $3,501.28.

In September 2018, BitGo grew to become a licensed cryptocurrency custodian by means of the acquisition of a state belief firm constitution within the American state of South Dakota. As such, the agency subsequently grew to become topic to regulatory oversight in compliance with Know Your Customer (KYC) and anti-money laundering (AML) insurance policies.

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Source: BTC Upload