Recently, TRON founder Justin Sun's participation in WBTC (Wrapped BTC) has attracted widespread attention in the crypto industry. Sun said on social media that his personal participation in WBTC is strategic, aimed at promoting the development of decentralized, secure protocols, and promoting safer projects. He made it clear that he does not control the private keys of WBTC reserves and cannot move any BTC reserve assets. This statement further consolidates WBTC's position as an important part of the DeFi ecosystem and ensures that it continues to play a key role.
WBTC is an ERC-20 token issued by BitGo, pegged 1:1 to Bitcoin, and capable of running on blockchains such as Ethereum. Since its launch in 2019, WBTC has become one of the largest Bitcoin DeFi applications, supporting multiple platforms including Ethereum, TRON, etc. As the custodian of WBTC, BitGo has been responsible for the custody of all underlying Bitcoins since 2019 and manages the minting and smart contract private keys of WBTC tokens. Its independent custodian role and high credibility make it an important player in the global digital asset industry.
On August 9, BitGo announced a unique partnership and joint venture with BiT Global to expand the WBTC business into the world's first cross-jurisdictional and cross-institutional custody project. The upgrade will be completed within 60 days without interrupting services. BitGo subsequently disclosed the relevant partners on its official website, mentioning Sun Yuchen's participation, which sparked heated discussions in the crypto community.
Sun Yuchen further clarified that WBTC does not operate any differently than before, audits are still being conducted in real time, and the minting process is fully managed by custodians Bitglobal and BitGo in accordance with previous procedures. This transparency and continuity highlights WBTC's stable position in the DeFi ecosystem.
Since founding TRON, Justin Sun has been committed to promoting the decentralization of the Internet. TRON has become one of the world's three largest public chain platforms and will be fully decentralized by the end of 2021, becoming a decentralized organization (DAO) governed by the community. Currently, TRON DAO is one of the largest decentralized organizations in the world, which also reflects Justin Sun's long-term strategic vision in the field of decentralization.
BitGo CEO Mike Belshe responded to the recent discussion, emphasizing that as a licensed custody platform, BiT Global manages the custody assets through a multi-signature mechanism and must comply with regulatory requirements to ensure the security and compliance of customer assets. This strict management of customer assets further consolidates WBTC's core position in the DeFi ecosystem.
Although there have been doubts and FUD (fear, uncertainty, doubt) about WBTC in the community, it turns out that these doubts are not valid. Jupiter co-founder meow commented on social media that BitGo has always been an excellent custodian and believes that their intention is to ensure the security and decentralized development of WBTC.
Justin Sun’s strategic participation in WBTC not only injects new vitality into the DeFi ecosystem, but also provides strong support for promoting the decentralization of the industry.
