BitGo Taps LayerZero For Multi-Chain WBTC Rollout

Wrapped Bitcoin is expanding onto new networks.

On Sept. 10, BitGo, the company behind Wrapped Bitcoin (WBTC), announced the token’s deployment on the Avalanche and BNB Chain Layer 1 networks.

The move follows BitGo tapping LayerZero’s Omnichain Fungible Token (OFT) Standard as infrastructure to facilitate a multi-chain expansion for WBTC, with BitGo also revealing plans to soon launch WBTC across dozens of new chains supported by LayerZero in the near future.

“WBTC — a $9 billion asset and one of the most widely used tokens in crypto — is adopting the OFT Standard, securing its expansion to any of the 80+ blockchains LayerZero supports,” LayerZero tweeted.

“This strategic integration opens up new horizons for WBTC’s composability and liquidity in DeFi,” BitGo said. “The ability to deploy WBTC in a native format on any new chain means that users can expect the same level of security and interoperability regardless of where they operate.”

WBTC is an ERC-20 token backed on a one-to-one basis Bitcoin, offering a vehicle for holders to migrate the value of their BTC onto other networks. WBTC was already natively deployed on Ethereum, Tron, Osmosis, and Base prior to its launch on Avalanche and BNB Chain.

Cross-chain WBTC transactions must be verified by both BitGo and either the decentralized verifier networks (DVNs) operated by LayerZero Labs or Polyhedra, a web3 interoperability protocol.

“Using both proof of authority (LayerZero Labs) and ZK-proofing (Polyhedra) means that two distinct methods of cryptographic verification are in play,” BitGo said. “This layered approach minimizes the risk of a single point of failure.”

The price of LayerZero’s ZRO token over the past 24 hours, according to The Defiant’s crypto price feeds.

BNB Chain is currently the fourth-largest smart contract network by total value locked (TVL) with $4.88 billion in its native DeFi protocol, while Avalanche ranks seventh with $1.14 billion, according to DeFiLlama.

WBTC restructure

The news comes as Wrapped Bitcoin faces intense scrutiny over BitGo’s plan to restructure the token’s ownership structure.

On Aug. 9, BitGo announced it would transfer control over WBTC to a joint venture between itself and BiT Global, with the venture also planning with the controversial Tron founder, Justin Sun, and the Tron ecosystem. The transition would take effect after 60 days.

The news sparked a knee-jerk reaction from many in the web3 community, with MakerDAO publishing a proposal to halt new DAI mints against WBTC on the following day — with Maker’s community passing the measure on Aug. 15.

The proposal emphasized concerns relating to the reduced transparency regarding WBTC’s management, control over the protocol no longer remaining solely in the hands of a U.S.-based firm, and Justin’s Sun’s increased involvement.

The proposal asserted that the sale of the TrueUSD stablecoin to a Sun-linked conglomerate last year precipitated the suspension of real-time proof of reserves, price depegs, redemption service disruptions, and the resignation of its previous management team.