BitGo, a digital asset trust and security company, may launch its own version of the Ethereum network for Wrapped Bitcoin (WBTC), a bitcoin version on ERC-20 protocol, Coindesk has learned, citing an email from BitGo CTO Ben Chan.
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According to Chan, BitGo is trying to contact community partners to develop an Ethereum sidechain due to the sky-high rate of fees allegedly triggered by Tether (USDT). Currently, BitGo secures over 45,000 WBTC worth of $500+ million.
BitGo CTO says that WBTC traction has been largely "thanks to the highly composable DeFi industry."
"We will reach out to the community partners to see if they are interested in embarking upon a sidechain together," Chan added.
On August 14, the average transaction fee on the Ethereum blockchain reached an all-time high at the $6.62 mark. The surge in fee costs has also resulted in a short-term decrease in on-chain activity.
Earlier in August, Clear Hedge Capital, a lending group for alternative investment vehicles, entered into a partnership with BitGo Prime to offer multi-million loans to institutional investors. The both companies will focus their services — built by a Wall Street team — only on institutional clients.
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