LayerZero has been gathered by BitGo as the interoperability provider for the Wrapped Bitcoin (WBTC) token. This will make it even more visible on blockchain networks.
LayerZero said in a statement on September 10 that BitGo is now using its Omnichain Fungible Token (OFT) standard for WBTC. This technology is already being used in a number of widely recognized projects, such as Swell, Ethena, and EtherFi.
The goal of the company and its partners when they launched Wrapped Bitcoin in 2019 was to add Bitcoin to the decentralized finance (DeFi) community on Ethereum. People who own Bitcoin can use WBTC to use a number of DeFi apps, such as to give, borrow, swap, and more.
BitGo Expands WBTC Integration
BitGo has decided to add LayerZero to its WBTC coin. This comes as the company expands its use across two more blockchain networks, Avalanche and BNB Chain, which are both major players in the DeFi space.Â
DeFiLlama says these chains are the fourth and seventh greatest by total value locked (TVL). They support WBTC, along with Ethereum, Tron, Base, and Osmosis.
LayerZero pointed out that BitGo’s adoption of the OFT standard makes it possible for WBTC to be used and transferred directly across multiple blockchains.Â
This gets rid of the risks that come with token bridging from Ethereum. LayerZero’s technology has many benefits, such as the ability to combine multiple chains, a unified token supply, and better modular security.
BitGo will set up its own decentralized validator network (DVN) as part of this partnership. This will make sure that all omnichain WBTC transactions are checked. The companies Polyhedra and LayerZero Labs will back this project.
