Summary
Ketju does not approve FBTC: we could not confirm how many of the three members of its custody Security Council must approve a transfer, and we found no independent proof of reserves. FBTC is Function Network’s Bitcoin-backed omnichain asset. It has no connection to Fidelity’s spot Bitcoin ETF, which trades under the same ticker. FBTC uses the same custodial structure as WBTC and BTCB, which Ketju also does not approve. Named custodians hold the BTC, Merchants cleared through KYB mint it 1:1, and retail holders can only sell on secondary markets. A Security Council of Mantle, Antalpha Prime and Cobo oversees custody through threshold-signature and MPC techniques. That separates roles more clearly than WBTC does. FBTC has no known scandal, but that does not make up for an unconfirmed threshold and no independent check of reserves. This gap in disclosure is a standing one.
Review triggers
- An independent, third-party proof-of-reserves attestation for FBTC is published on a recurring schedule
- The exact Security Council or TSS approval threshold is publicly confirmed and shown to need real agreement among several parties, with no way for one party to override
- A permissionless redemption, or a clearly disclosed one open on equal terms, is shown to work for holders who are not institutions
- Twelve months in a row with no custody, freeze or minting incident after the threshold is confirmed
Facts
- Verdict
- Not approved
- Type
- Other
- Chains examined
- Ethereum
- Instruments
- FBTC
- Reviewed
- Last confirmed