Cryptocurrency custody company BITGO plans to provide wrapped Dogecoin tokens for users as the meme coin community enjoyed massive gains in October.
CoinDesk reported on Wednesday that BitGo reached an agreement with wDogeDAO, a decentralized autonomous organization. The partnership aims to power wrapped Dogecoin tokens for holders.
BitGo’s partnership could usher in greater utility for the leading meme coin. Wrapped DOGE tokens could allow holders to interact with decentralized applications (dapps) on Ethereum’s blockchain.
Wrapped tokens tap smart contract technology to provide liquidity tied to an underlying asset. Such cryptocurrencies are pegged in 1:1 to another digital asset. Virtual currency protocols leverage this system to free up liquidity and access ecosystems that live on other blockchains.
During the initial decentralized finance (DeFi) boom, users were introduced to wrapped Ether (wETH) as an alternative to the standard ETH asset.
BitGo also plans to deliver hot wallet and self-managed custodial services for both the meme coin and its wrapped version by the end of November 2022.
Dogecoin Soars Over 110% In October 2022
BitGo’s announcement comes after a packed week for the meme coin community. Elon Musk acquired Twitter for $44 billion with backing from leading crypto exchange Binance and other digital asset stakeholders.
Notably, Musk has mentioned his support for Dogecoin on several occasions. The meme coin responded to Musk’s Twitter buyout with gains for hodlers. TradingView data showed that the token rose over 110% in October. Most of the gains were recorded towards the end of the month amid a broader crypto market relief rally and the completion of the Twitter deal.
At press time, CoinMarketCap ranked the meme coin eighth thanks to its $17 billion market capitalization.
