BitGo CEO Mike Belshe has addressed concerns about the security of wBTC, a tokenized version of Bitcoin, following MakerDAO’s decision to eliminate its exposure to the asset. Belshe touted BitGo’s autonomy and the robust security measures in place for storing wBTC.
MakerDAO, the issuer of the DAI stablecoin, recently decided to stop using wBTC vaults for liquidity. The decision was fueled by concerns that a proposal to change custody to be held jointly with BiT Global, an entity partially controlled by Tron founder Justin Sun, could lead to centralization of control.
In an X Spaces discussion, Belshe reassured the community that Justin Sun does not have access to BitGo’s asset keys. He clarified the key management process, stating that the keys will be split between BitGo’s US and Singapore entities, as well as BiT Global, so that no single party has the ability to compromise the underlying treasury.
Belshe also addressed concerns about BiT Global's ownership structure, noting that Sun is not an employee and that the company operates as a public holding company in Hong Kong with fiduciary duties to protect client assets.
Data shows that despite MakerDAO’s decision, wBTC remained stable and there was no significant change in redemptions. Meanwhile, Coinbase hinted at the potential launch of its own wrapped Bitcoin token, cbBTC.
*This is not investment advice.