LayerZero becomes BitGo’s official interoperability protocol for WBTC

BitGo has selected LayerZero as the digital asset custody provider’s official interoperability provider for its Wrapped Bitcoin token.

On September 10, LayerZero (ZRO) announced that BitGo is now using LayerZero’s Omnichain Fungible Token standard for the crypto company’s Wrapped Bitcoin (WBTC). Projects that have already accessed the OFT include Swell, Ethena, and EtherFi.

BitGo Expands WBTC to BNB Chain and Avalanche

BitGo and its partners launched Wrapped Bitcoin in 2019 with the goal of bringing Bitcoin (BTC) to the DeFi ecosystem on Ethereum (ETH). BTC holders can use WBTC to access decentralized finance applications across lending, borrowing, swapping, and other services.

BitGo’s selection of LayerZero comes as the firm expands its WBTC token, a key asset in the decentralized finance space, to two more blockchain networks: Avalanche (AVAX) and BNB Chain.

WBTC is currently available on Ethereum, Tron, Base, Osmosis, and other networks. The latest integrations, BNB Chain and Avalanche, rank as the fourth and seventh largest chains by total locked value, respectively, as seen on DeFiLlama.

Local WBTC minting

According to LayerZero, BitGo’s choice of the OFT Standard for WBTC enables the token’s native usage and transfer across multiple blockchains.

Users will be able to mine WBTC natively on supported chains without facing the risks associated with token bridging from Ethereum. Aside from omnichain composability, other benefits of using LayerZero for WBTC interoperability include unified supply and modular security.

As part of the collaboration with LayerZero, BitGo will implement its own decentralized validator network, which will play a key role in ensuring that every omnichain WBTC transaction is validated. BitGo will collaborate with Polyhedra and LayerZero Labs on DVN.