Wrapped Bitcoin (WBTC) is reviewing a plan to place its Bitcoin (BTC) reserves with multiple custodians, a move the project says could reduce concentration risks across security, key management and operations.
WBTC says relying on one provider concentrates control of reserve security and day-to-day operations. It is considering a broader provider base to reduce that dependence and improve flexibility in responding to future security requirements.
The WBTC transparency dashboard listed 116,511.9929 BTC in reserves and 116,499.1908 WBTC in circulation on Saturday, Oct. 17. The figures provide a snapshot of the bitcoin held against the tokens in circulation.
WBTC represents bitcoin held in custody, giving lending platforms, decentralized exchanges and other financial applications access to BTC across multiple blockchains. The system also relies on its supporting smart contracts and host blockchains, which have separate security considerations.
WBTC cited the custody diversification seen among spot Bitcoin exchange-traded products after their launch in early 2024 as a precedent for spreading reserve custody.
The project said a multi-custodian arrangement would not, on its own, address quantum-related risks to Bitcoin’s cryptography. Quantum computers could eventually threaten the digital signatures used to secure Bitcoin transactions, particularly where public keys have been exposed. WBTC says a broader group of custodians could give it more flexibility to adopt future security standards.
WBTC said no action is required from holders, and minting and redemption will remain unchanged. The project has not provided a target date for the plan. It says it will announce its chosen custodians and transition details after finalizing the evaluation.
