BitGo CEO Calls Out Critics of Wrapped Bitcoin for Lack of Intellectual Honesty
BitGo’s CEO, Mike Belshe, has come forward to defend the recent collaboration with BiT Global, which involves wrapped bitcoin. The partnership has faced criticism due to its association with Tron founder Justin Sun. Belshe emphasized the superiority of BitGo’s key storage model over that of Coinbase, stating that it offers enhanced security measures.
The primary objective of the deal with BiT Global is to bolster security measures and expand operations in Asia. The model adopted aims to distribute key custody among multiple institutions to eliminate single points of failure, despite reservations surrounding Sun’s involvement.
Critics, such as Threshold, have raised concerns about the BitGo-BiT Global partnership. Threshold proposed merging its BTC wrapper, tBTC, into Wrapped Bitcoin (wBTC) to address perceived control issues with wBTC. Belshe dismissed these criticisms, highlighting the importance of intellectual honesty in evaluating decentralization efforts.
In response to Coinbase’s introduction of cbBTC, a competitor to wrapped bitcoin, Belshe expressed concerns about the impact on decentralized finance (DeFi) principles. He emphasized that BitGo’s key storage model surpasses anything Coinbase has to offer in terms of security and decentralization.
Addressing criticisms regarding BiT Global’s legal structure, Belshe clarified that the company, registered as a licensed Trust or Company Service Provider (TCSP) in Hong Kong, has a fiduciary duty to ensure the security of bitcoin assets in its custody. The partnership with BiT Global aims to enhance security by eliminating single points of failure and expanding operations in Asia.
Despite Justin Sun’s colorful reputation, Belshe stressed the importance of transparency in the partnership. By openly discussing Sun’s involvement, BitGo aimed to foster trust within the community. The move paid off, as on-chain data indicates no significant outflow from wBTC following the collaboration.
Belshe emphasized the selection of a qualified custodian for the assets, noting that BiT Global, despite Sun’s ownership, operates independently from his control. The partnership underscores the importance of entrusting assets to a reliable custodian.
In conclusion, the collaboration between BitGo and BiT Global aims to enhance security measures and expand operations in Asia while emphasizing transparency and trust within the crypto community. The partnership’s structure prioritizes decentralized key storage and security to mitigate risks associated with single points of failure.
