WBTC: Bitcoin backed stable coin on Ethereum blockchain
A new stable coin has emerged in the market. But instead of being backed by fiat currency (such as USD, EUR, JPY etc) the new cryptocurrency is backed by Bitcoin. And the token is an ERC-20 token, that is it is running on top of Ethereum Blockchain. The new cryptocurrency is called Wrapped Bitcoin or WBTC for short.
WBTC is a joint partnership between Kyber network, Republic Protocol and custody wallet BitGo. It is described as a cryptocurrency having the stability of Bitcoin with the “flexibility” of Ethereum. BitGo’s CTO Benedict Chan likens WBTC as bank notes similar to the ones issued by banks which could be redeemable for gold.
Bitcoins can be exchanged for WBTC via atomic swaps. According to the official website of WBTC, users can exchange their Bitcoins for the equivalent amount of WBTC after completing all the necessary KYC and AML details.
According to Coinmarketcap, WBTC has a daily trading volume of $14,000 and the price of WBTC is $3,473, which is a little over the price of 1 Bitcoin. Market cap of WBTC hasn’t been generated at the time of writing but is expected to be out soon.
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