ccording to a new report, crypto custody platform BitGo is transitioning its Wrapped Bitcoin (WBTC) business to a multi-jurisdictional structure across Hong Kong, Singapore, and its current U.S. operations. The move aims to increase security and reduce risk.
BitGo also claims the transition will make it the world's first multi-regional and multi-institutional digital asset custodian via a partnership with Bit Global.
New Approach, Same Technology
BitGo says this new approach continues to use the same patented multi-signature technology and deep cold storage while allowing asset security across various global locations.
CEO Mike Belshe stated the shift should occur transparently and be completed by October 8th.
Tron Collaboration Draws Attention
Partners for the joint custody venture include BitGo, Tron founder Justin Sun, and the Tron ecosystem. However, Belshe reassured clients in a post on X, that Justin Sun would be unable to access funds.
This collaboration is notable given Tron's April request for a New York court to dismiss an SEC lawsuit over allegedly illegal securities activities. The SEC alleges Tron and Sun engaged in manipulative crypto trading and promotion tactics.
Enhancing Asset Security
By transitioning WBTC operations to key global financial centers, BitGo aims to reduce dependence on its U.S. business. Distributing signature keys and cold storage geographically makes assets less vulnerable to a single point of failure.
For clients, this change means WBTC should become more secure and lower risk while remaining easy to use across DeFi protocols.
So far, BitGo has not indicated plans to migrate custody of additional cryptocurrencies into this new structure. However, success here may lead the platform to expand the model further.
