A Bitcoin-Backed Stablecoin Has Launched on the Et

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Christine Kim
Jan 31, 2019 at 01:00 UTC
Updated Jan 31, 2019 at 01:22 UTC
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A new token backed one-to-one with bitcoin is now live on the ethereum blockchain.

“Wrapped BTC” (WBTC) officially launched its ERC-20 token Wednesday evening. The project was first unveiled in October as a joint initiative between decentralized exchange startups Kyber Network and Republic Protocol, as well as cryptocurrency custody company BitGo.

As stated on the project’s website, the aim of WBTC is to bring “greater liquidity to the ethereum ecosystem including decentralized exchanges and financial applications.”

At the time, BitGo CTO Benedict Chan described WBTC as possessing both “the stability of bitcoin and the flexibility of ethereum,” likening the new crypto asset to traditional bank notes (the kind that were once redeemable for gold). While volatile compared to the U.S. dollar, bitcoin is the most liquid and stable of cryptocurrencies, he noted. While volatile compared to the U.S. dollar, bitcoin is the most liquid and stable of cryptocurrencies with the highest market capitalization, he noted.

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