Sky (formerly MakerDAO) Reconsiders WBTC Divestment Following Expert Consultations

COINOTAG news, September 25, as per CoinDesk, lending platform Sky (formerly MakerDAO) is considering halting the divestment of WBTC. The decision follows new counsel from an influential advisor and detailed discussions with BitGo CEO Mike Belshe on the Sky forum. BitGo, having been the sole custodian for WBTC, reached a custody transition agreement with Tron founder Justin Sun in August.

Belshe recently clarified on the Sky forum that the new custody terms have been misunderstood, highlighting that Justin Sun lacks the unilateral authority to alter BitGo’s key management practices. “They will not ‘have the ability to direct changes to key management practices at BitGo or BitGo Singapore,’ the two entities responsible for overseeing the multi-signature keys controlling the new custodian,” Belshe stated on September 20.

On Tuesday, BA Labs commented, “The additional details and clarifications provide us with greater comfort about the current state of WBTC operations and key management.” Advisors have reduced the collateral risk to around $170 million in total borrowed and loaned, thus bringing it into a more manageable range.

“We believe the risk no longer warrants an immediate delisting of collateral,” BA Labs noted, recommending an indefinite pause in the divestment process.