TechFlow reports, on September 25, according to Coindesk, DeFi lending platform Sky (formerly MakerDAO) may halt its plan to phase out Wrapped Bitcoin (WBTC) as collateral. This shift follows in-depth discussions between key advisor BA Labs and BitGo CEO Mike Belshe, which addressed concerns regarding Tron founder Justin Sun's involvement in WBTC custody.
Previously, BA Labs had raised concerns about Sun’s participation, leading Sky community members to overwhelmingly vote in favor of a five-step removal of WBTC as collateral starting in early October. However, Belshe recently clarified that the new custody arrangement was misunderstood, emphasizing that Sun does not have unilateral control over structural changes. He stressed, "Neither BitGo nor BitGo Singapore will have 'the ability to direct changes in critical management practices.'"
BA Labs subsequently stated, "Additional details and clarity have made us more confident about WBTC’s current operational and key management status." While concerns remain regarding BitGlobal as a WBTC signer, they are no longer deemed sufficient to warrant immediate collateral removal. As a result, BA Labs recommends indefinitely pausing the process to remove WBTC as collateral. Previous report, the Sky community voted to approve a proposal phasing out WBTC as collateral, with the platform currently holding $200 million in loans backed by WBTC.
