Home Uncategorized Bitcoin-Backed Stablecoin Launches on the Ethereum Blockchain

Bitcoin-Backed Stablecoin Launches on the Ethereum Blockchain

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A new stablecoin called Wrapped Bitcoin (WBTC) has been launched on the Ethereum Blockchain and will offer cross-chain trading options. However, this one is backed not by a fiat currency but by the world’s number one cryptocurrency, Bitcoin (BTC).

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.

According to the team staying behind the project, WBTC is intended for ensuring greater liquidity to the Ethereum ecosystem in general including financial apps and decentralized exchanges.

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 was once redeemable for gold).

While volatile compared to the U.S. dollar, bitcoin is the most liquid and stable of cryptocurrencies with the highest market capitalization, he noted.

The price of WBTC as listed on the CoinMarketCap website is $3,506 compared to Bitcoin’s price which is $3,496 as of press time, a noticeable price difference which could be attributed to the launch demand for the asset. 

The price is expected to match Bitcoin’s price. WBTC has a supply quantity of 65 WBTC listed on the website which would equate to a market cap of about $228,000.

Dr. Vitalik Buterin the creator of Ethereum expressed his reservation on the centralization of the asset and hoped that the asset would be more decentralized over time.

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