The post BitGo Partners with LayerZero to Boost WBTC Interoperability Across BNB and Avalanche Chains appeared on BitcoinEthereumNews.com.

BitGo Partners with LayerZero to Boost WBTC Interoperability with LayerZero: In a significant development for the cryptocurrency space, BitGo, a leading digital asset custody firm, has selected LayerZero, a cross-chain messaging protocol, as the interoperability provider for Wrapped Bitcoin (WBTC). According to Blockworks, LayerZero’s Omnichain Fungible Token (OFT) standard will extend WBTC’s functionality to the BNB Chain and the Avalanche blockchain, enabling seamless cross-chain movement and increasing liquidity for WBTC holders. This collaboration marks an important milestone in the ongoing efforts to enhance interoperability in the decentralized finance (DeFi) ecosystem, enabling Bitcoin liquidity to flow across multiple blockchains while maintaining a secure and decentralized structure. The Role of Wrapped Bitcoin (WBTC) in DeFi WBTC is a tokenized version of Bitcoin (BTC) that operates on Ethereum and other blockchains, allowing Bitcoin holders to use their assets within the decentralized finance ecosystem. As Bitcoin is traditionally confined to its own blockchain, WBTC offers a solution by “wrapping” Bitcoin in a token format that is compatible with Ethereum’s ERC-20 standard. The popularity of WBTC has grown as it enables Bitcoin to be used in a wide variety of DeFi applications, such as lending, borrowing, and yield farming. By bridging Bitcoin’s liquidity to other networks, WBTC has become a critical tool for leveraging the value of Bitcoin across multiple DeFi protocols. LayerZero’s Role in Enabling Cross-Chain Interoperability LayerZero is a cross-chain messaging protocol designed to facilitate seamless communication between various blockchain networks. Its Omnichain Fungible Token (OFT) standard allows tokens to operate across multiple chains, preserving the fungibility and utility of the asset regardless of which blockchain it resides on. LayerZero’s technology enables liquidity to flow across chains, reducing the need for multiple bridges or wrapped versions of assets. In this partnership, LayerZero’s OFT standard will be employed to extend WBTC to both the…

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Filed under: News - @ September 11, 2024 2:12 am