The amount of Wrapped Bitcoin (WBTC) used as collateral on the Aave platform has reached an all-time high, despite concerns about the security of Bitcoin (BTC) collateral. According to Dune Analytics data, there were more than 37,000 WBTC on the Aave platform on the Ethereum network in September, or more than $2 billion worth of WBTC at current prices.

This record comes after concerns about the security of WBTC collateral among cryptocurrency investors. BitGo’s decision to grant partial control of its multi-signature wallet to Hong Kong-based BiT Global has sparked controversy.

Sky Protocol had previously decided to remove WBTC from its platform, but has since suspended the decision after discussions with BitGo co-founder Mike Belshe. BitGo has pledged to provide at least 60 days’ written notice of any changes to the entities that control WBTC keys.

21.co has announced plans to add Chainlink’s proof-of-reserve system to 21BTC. Responding to concerns about Coinbase’s cbBTC product, Paul Grewal confirmed that customers will be refunded if collateral is lost.

According to DeFiLlama, WBTC is still the most popular Bitcoin collateral, with over $9 billion in TVL. What do you think about these developments? We welcome your comments.