Nomic, a Layer-1 blockchain, will begin supporting Ethereum on its decentralized Bitcoin custody engine on a testnet launched on September 12. This will allow Nomic users to on- and off-ramp Bitcoin (BTC) on Ethereum without a third-party, centralized custodian.

Nomic's native nBTC can be used in place of Wrapped Bitcoin (WBTC), which is backed by BTC held in reserve by a custodian. nBTC provides a trust-minimized solution for using Bitcoin in decentralized finance and may be used on other Ethereum Virtual Machine (EVM)-based chains in the future.

Before nBTC, the only alternative to WBTC was tBTC, originally issued by the Keep network, and renBTC, issued on a platform managed by Alameda Research, which closed when FTX collapsed.

BitGo's decision to transfer WBTC custody to a joint venture with BiT Global proved controversial due to the involvement of Justin Sun. Threshold later proposed swapping WBTC's centralized custody, mint and burn model for a permissionless mint and redeem mechanism.

Nomic is part of the Cosmos ecosystem, and nBTC can be moved on Cosmos or any chain compatible with Cosmos' Inter-Blockchain Communication protocol, providing a decentralized alternative to existing Bitcoin DeFi options.

Source: https://cointelegraph.com/news/nomic-ethereum-support-decentralized-bitcoin-custody-testnet

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