Recently, TRON founder Justin Sun's participation in the WBTC project has attracted widespread attention. Sun said on social media that participating in WBTC is a completely strategic move aimed at supporting the development of decentralization, security protocols and other related projects. He emphasized that he does not hold the private key of the WBTC reserve and cannot move any Bitcoin reserves.
WBTC (Wrapped BTC) is an ERC-20 token issued by BitGo, 1:1 backed by Bitcoin, and circulated on multiple blockchains including Ethereum, TRON, Base, Kava, Osmosis, etc. As an important part of the DeFi ecosystem, WBTC has become one of the largest Bitcoin DeFi applications since its launch in 2019, with support from 74 partners including TRON.
As the custodian of WBTC, BitGo is responsible for the safekeeping of all underlying Bitcoins and the management of the smart contract private keys for minting WBTC tokens. BitGo enjoys a high reputation in the industry, and its shareholders include well-known institutions such as Goldman Sachs. Recently, BitGo announced a partnership with BiT Global to shift the WBTC business to the world's first cross-jurisdictional and cross-institutional custody platform. This change will take place within 60 days and will not affect existing services.
This move has sparked heated discussions in the crypto community, especially the participation of Justin Sun as an individual collaborator. In response, Justin Sun said that the operating mechanism of WBTC has not changed, and all operations are still carried out by BitGo and Bitglobal in accordance with established procedures, and transparency is ensured through real-time audits.
Since founding TRON, Justin Sun has been committed to promoting the decentralization of the Internet. In 2021, TRON achieved full decentralization, becoming one of the world's three largest public chain platforms and transforming into a community-governed decentralized organization (DAO). Currently, TRON DAO has become one of the largest decentralized organizations in the world.
In response to the community's concerns, BitGo CEO Mike Belshe said that as a licensed custody platform, BiT Global follows strict regulatory requirements and manages custody assets through a multi-signature mechanism to ensure the safety of funds. He emphasized that BitGo has always performed well in the industry and is committed to providing customers with safe and reliable custody services.
Although there have been some doubts about WBTC in the crypto community, these are mostly based on a lack of understanding of its operating mechanism. Jupiter co-founder meow said that trust in BitGo still exists, and he believes that BitGo will continue to fulfill its responsibilities and ensure the sound development of the decentralized ecosystem.
Sun’s involvement shows that he remains firmly committed to promoting the decentralization of the blockchain industry. By supporting projects like WBTC, he hopes to further consolidate the foundation of decentralized finance and bring more innovation and security to the industry.
