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On November 2, 2022, digital asset custody and financial services provider Bitgo introduced a wrapped version of the meme coin asset dogecoin built on top of the Ethereum blockchain. The company detailed the wrapped dogecoin initiative, Wdoge DAO, is through a partnership between Dogecoin Foundation, Bluepepper and Mydoge wallet.
Almost four years ago, in January 2019, Bitgo launched the popular ERC20 token wrapped bitcoin (WBTC). WBTC is essentially a wrapped version of bitcoin built with the ERC20 standard on top of Ethereum, and each WBTC is backed by bitcoin (BTC), at a 1:1 ratio.
Today, statistics show that there are 245,379 WBTC in circulation, worth approximately $5.2 billion using today’s exchange rates. On Wednesday, Bitgo revealed that the company has built a similar initiative for the popular meme coin asset dogecoin (DOGE).
Wrapped dogecoin (WDOGE) tokens are also supported by a 1:1 ratio with dogecoin (DOGE). The WDOGE token has its own website that explains the project’s benefits, including the use of WDOGE with a decentralized economy (defi).
The site says “lend WDOGEs on defi protocols using your WDOGEs as collateral” and “get a loan in defi protocols using your WDOGEs as collateral.” The website’s Frequently Asked Questions (FAQ) section explains that the developers will “soon publish a dashboard similar to WBTC’s dashboard” for proof of assets.
Bitgo’s blog post says the company will also offer two types of custody services and provide hot wallets for WDOGE as well. The WDOGE announcement follows dogecoin’s recent market tear after Elon Musk officially acquired social media platform Twitter.
Dogecoin has managed to take the eighth largest position in terms of market capitalization. Bitgo currently has a registration form to get started with the Wrapped dogecoin (WDOGE) project.
What do you think about Bitgo introducing a wrapped dogecoin token? Let us know what you think about this topic in the comments section below.
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