BiT Global Trust and the evolution of WBTC: a conversation with Z Liu
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The crypto world never stands still, and BiT Global Trust plays a key role in this. During the first crypto event in Abu Dhabi, I spoke with Z Liu, Director of BiT Global Trust.
Liu provided in-depth insights into the impact of Wrapped Bitcoin (WBTC) on Decentralized Finance (DeFi), the broader crypto market, and the position of the Middle East as a growth region.
Why Abu Dhabi?
“The Middle East is becoming one of the global hubs for Bitcoin and blockchain adoption,” Liu began. He emphasized the role of favorable regulations in the region. “Governments here are developing stimulating regulatory frameworks to support the growth of the industry. The Middle East also has one of the most dynamic economies in the world.”
Liu indicated that the Abu Dhabi event is an important milestone. “We are here to support the industry and to provide education on the role of Bitcoin and WBTC. This event highlights how important Bitcoin is to one of the most vibrant hubs for crypto and blockchain applications.” He also mentioned the importance of networking. “It’s a fantastic opportunity to connect with other industry players.”
WBTC’s role in DeFi
“WBTC was designed to support DeFi applications from day one,” Liu said. He explained that DeFi (Decentralized Finance) is a crucial part of the crypto space. “It eliminates intermediaries, reduces costs, increases efficiency, and makes financial services accessible to everyone, regardless of where they are.”
According to Liu, Bitcoin offers the deepest liquidity pool in the crypto market, especially after the approval of the spot Bitcoin ETF in the US. “WBTC serves as a strategic tool to provide liquidity for smart contract applications such as lending, yield farming, and decentralized trading (DEX trading). It allows users to realize the full potential of their Bitcoin without selling it.”
Liu also pointed out a challenge within the industry: the balance between centralization and decentralization. “With the rise of Bitcoin ETFs, we see that a large portion of Bitcoin could be swallowed up by centralized products. This could pose a risk to the decentralized nature of Bitcoin. WBTC helps to maintain that balance and offers an alternative within the DeFi ecosystem.”
The recent restructuring
WBTC operation recently underwent a major restructuring. Liu explained: “WBTC is a wrapped Bitcoin, which means that users deposit their Bitcoin with us through a network of institutional partners. In return, they receive WBTC, usually based on the ERC standard.”
He explained why this standard is essential. “Bitcoin and Ethereum cannot communicate directly with each other. WBTC makes it possible to use Bitcoin in DeFi applications on the Ethereum network. This opens up new opportunities for use cases, such as lending, yield farming, and trading.”
The restructuring focused on strengthening the network of institutional players and improving the user experience. “We wanted to ensure that Bitcoin holders not only enjoy its status as the superior choice for store of value, but also the full benefits of DeFi. This makes Bitcoin more relevant than ever.”
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The importance of education and collaboration
Liu repeatedly emphasized the importance of education within the industry. “Many people do not fully understand the impact of WBTC and DeFi. By sponsoring events like this, we aim to generate more awareness and accelerate adoption.”
He also spoke about Abu Dhabi’s unique position as a venue. “This is a great place to bring people together from all over the world. It is easy to access, and it attracts participants from both Asia and other parts of the world. We are happy to sponsor this event and look forward to future collaborations.”
Future outlook
Liu looked to the future of WBTC and DeFi. “With Bitcoin’s rapid adoption in traditional financial markets, we are seeing a considerable increase in demand for DeFi solutions. WBTC will play a central role in this. We expect the market to be worth several hundred billion in the coming years.”
He also pointed to the broader impact on the industry. “We want to protect the decentralized nature of Bitcoin while expanding adoption. WBTC offers the best of both worlds: users can hold their Bitcoin while enjoying the benefits of liquidity and yield.”
Liu concluded on a positive note about the future of the crypto industry in the Middle East. “This event shows how important this region is to the global growth of Bitcoin and blockchain. We look forward to what the future holds.”
