Sky Pauses Plan to Offboard Wrapped Bitcoin, After Chat With BitGo’s Belshe

Sky, the decentralized finance lender previously known as MakerDAO, is considering pausing its plan to offboard wrapped bitcoin (WBTC) as collateral. This decision comes after a discussion with Mike Belshe, CEO of BitGo, the former custodian of WBTC. WBTC is a token that allows investors to use bitcoin on other blockchains, and it is a popular choice for collateral in the DeFi lending space. The influential Sky adviser, BA Labs, had raised concerns about Tron founder Justin Sun’s involvement with WBTC. However, after further discussions and clarification from Belshe, BA Labs is now more comfortable with the current state of WBTC operations and key management. The adviser recommended indefinitely pausing the collateral offboarding procedures. This development has energized competitors offering alternative versions of wrapped bitcoin, including dlcBTC, tBTC, FBTC, and Coinbase’s cbBTC.