BitGo, digital asset financial services provider, announced on Thursday it is adopting oracle network, Chainlink, to provide on-demand, definitive truth around the collateralization of “Wrapped Bitcoin” (WBTC). BitGo revealed that over the past year it has bridged close to $1 billion onto the Ethereum blockchain in the form of WBTC, an ERC-20 token backed one-to-one by bitcoin, and held at BitGo Trust.
“To boost the transparency and auditability of WBTC, BitGo will become the first entity to adopt Chainlink’s new “Proof of Reserve” mechanism. Proof of Reserve enables DeFi applications using WBTC to fully automate the process of auditing BTC value held by BitGo’s multi-signature contract in a trustless and tamper proof manner.”
While sharing more details about the adoption, Mike Belshe, Co-Founder and CEO of BitGo, stated:
“Chainlink’s Proof of Reserve feature enables developers to easily integrate WBTC’s verifiable reserves into their smart contracts to make the transparency of WBTC’s reserve system accessible to the end users. Chainlink’s proven ability to secure value in the blockchain space gives us great confidence that our users can trust this new feature in production to provide them with the most up-to-date and accurate assessment of our WBTC reserves.”
BitGo further added to provide transparent and fully automated readings of WBTC’s reserves on demand, DeFi applications on Ethereum will be able to connect to a continually updated WBTC Proof of Reserve Reference Contract powered by a Chainlink decentralized oracle network.