wBTC with PayPal and BitGo ?

Coinbase recently listed WBTC on it's platform...

What will happen with WBTC if PayPal buys BitGo?

PayPal is going to allow people to buy and sell Bitcoin but people won't be allowed to remove it from the platform. Will PayPal go and buy their own Bitcoin for the reserves or do they plan on using the funds being held by BitGo which are on reserve for WBTC?

Right now BitGo is the custodian of Bitcoin which backs WBTC. Rehypothecation is a practice whereby banks and brokers use, for their own purposes, assets that have been posted as collateral by their clients. This could create multiple claims...

I could see this as being a major issue...

Will this undermined Bitcoin or the value of WBTC going forward?

Who will have rights to any claims on Bitcoin?

#Bitcoin #WBTC #ethereum #banking #PayPal #DeFi #BitGo #Coinbase

In response to article:

https://www.bloomberg.com/news/articles/2020-10-22/paypal-said-to-be-in-talks-to-buy-crypto-firms-including-bitgo