Bitgo unveils a wrapped Dogecoin token built on Ethereum

On November 2, 2022, digital asset custody company and financial services provider Bitgo introduced a wrapped version of the dogecoin meme asset built on top of the Ethereum blockchain. The company detailed the wrapped dogecoin initiative, the Wdoge DAO, is through a partnership between the Dogecoin Foundation, Bluepepper, and Mydoge wallet.

Bitgo introduces wrapped dogecoin initiative

Almost four years ago, in January 2019, Bitgo launched the popular ERC20 wrapped bitcoin token (WBTC). WBTC is essentially a wrapped version of bitcoin built with ERC20 on top of Ethereum, and each WBTC is backed by bitcoin at a 1:1 ratio.

Today, statistics show that there are 245,379 WBTC in circulation, worth about $5.2 billion using today’s exchange rates. On Wednesday, Bitgo revealed that the company had set up a similar initiative for the popular meme currency dogecoin (DOGE).

The dogecoin (WDOGE) tokens are also backed by a 1:1 ratio with dogecoin (DOGE). The WDOGE token has its own website that explains the benefits of the project, including the use of WDOGE with decentralized finance (defi).

The website states “Lend WDOGE on defi protocols using your WDOGE as collateral” and “get a loan in defi protocols using your WDOGE as collateral“. The site’s frequently asked questions (FAQ) section explains that developers “Will soon release a dashboard similar to the WBTC dashbard” for proof of assets.

Bitgo’s blog post indicates that the company will also offer two types of custody services and provide hot wallets for WDOGE as well. WDOGE’s announcement follows the recent rip in the dogecoin market after Elon Musk officially acquired social media platform Twitter.

The dogecoin has managed to grab the eighth position in terms of market cap size. Bitgo currently has an application form to start the Wrapped Dogecoin Project (WDOGE).