Sky Considers Halting WBTC Collateral Plan Amid Concerns

According to PANews, decentralized finance lending platform Sky (formerly MakerDAO) is contemplating suspending its plan to use WBTC as collateral following advice from a key consultant. This decision stems from extensive discussions on the Sky forum with BitGo CEO Mike Belshe. BitGo was the sole custodian of the Bitcoin backing WBTC until August, when it transferred custody to Tron founder Justin Sun through a strategic partnership. BA Labs, an advisor to Sky, expressed concerns about Sun's involvement, especially given that approximately $200 million in loans on the platform are linked to WBTC collateral. Consequently, Sky community members voted last week on a five-step plan to exclude WBTC from collateral starting in early October. However, discussions on the matter have continued post-vote. Belshe posted extensively on the forum to clarify that the new custody arrangement had been misunderstood and that Sun does not have the unilateral ability to alter the existing structure. He emphasized that Sun would not be able to