Justin Sun might be good for Wrapped Bitcoin according to the director of new custodian.
This appears to be a transcript of an interview or Q&A session between two individuals: one representing BitGo (the company behind WBTC) and the other asking questions.
Here are some key points that can be extracted from this conversation:
WBTC growth: The current revenue model for WBTC is based on fees generated by wrapping and unwrapping Bitcoin. However, with a stable market, there’s little to no revenue generated. The goal is to grow the platform to 5-10 times its current size before introducing new revenue models.
Regulatory environment: The interviewee notes that international users are hesitant to store their WBTC in the US due to regulatory uncertainty. This has hindered growth potential for the platform.
Competition: BitGo believes it has a unique competitive advantage due to its diversified jurisdictional and geographic control of the vault and private key, making it virtually impossible for competitors to collude against them.
Decentralized vs Centralized: The interviewee argues that while decentralized projects may offer more "freedom" to users, they often lack accountability and can result in loss or theft of funds. BitGo strikes a balance between centralized and decentralized elements, providing a trusted party to hold large amounts of Bitcoin while maintaining transparency and regulatory compliance.
Other points:
- The platform is looking for ways to increase growth and revenue beyond just fees generated by wrapping and unwrapping.
- There’s a desire to make the platform more appealing to institutional investors, such as those mentioned in the traditional space (e.g. BlackRock).
- BitGo has a unique setup with multiple jurisdictions controlling the vault and private key, making it harder for competitors to undermine their system.
Please let me know if you have any specific questions or would like me to elaborate on these points!
