Bitcoin on the Ethereum Blockchain? There’s Going to Be a Token for That
Sixteen notable companies and blockchain projects have come together to develop Wrapped Bitcoin (WBTC), a new ERC-20 token pegged 1:1 with Bitcoin (BTC) to bring the value of the world’s most popular digital currency onto the Ethereum (ETH) blockchain.
We are excited to announce WBTC (Wrapped Bitcoin), a community effort to bring Bitcoin to Ethereum. This effort is initiated together with @BitGo and @republicorg, with many projects in the space joining as launch partners.https://t.co/WkjABWBil8
— Kyber Network (@KyberNetwork) October 26, 2018
According to the announcement, each new token that is minted will be fully backed by a bitcoin that is confirmed on-chain, with new token minting initiated by a merchant and performed by a custodian.
“This initiative will be bringing together the liquidity of Bitcoin and the extensive smart contract developer ecosystem of Ethereum. Applications on Ethereum such as decentralized exchanges and financial protocols will all be able to use Bitcoin seamlessly, creating bitcoin trading pairs which have been impossible until now. At the same time, the usage of Bitcoin will be expanded by having more decentralized use cases, such as exchange, loans, token payments,” said Loi Luu, co-founder and CEO of Kyber Network.
Gnosis, MakerDAO, Dharma, AirSwap, IDEX, Compound, DDEX, Hydro Protocol, Set Protocol, Radar Relay, Blockfolio and Prycto have all signed up as launch partners to provide support from either a capital, governance or marketing perspective.
WBTC will be available for trading in January 2019 and more information will be released on GitHub/Gitter to allow the community to provide further feedback and suggestions.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.