Summary
Ketju does not approve Merlin's Seal: only two parties, Cobo and Merlin Chain, must sign to release its BTC, a smaller approval set than any comparable Bitcoin wrapper Ketju has reviewed. Merlin's Seal is the BTC-locking bridge for Merlin Chain, a Bitcoin Layer 2. Cobo and Merlin Chain co-manage its MPC custody. WBTC uses a 2-of-3 multisig and Function FBTC a three-party Security Council, and Ketju approves neither because of custody concentration. Primary sources did not confirm how ordinary bridge redemptions work today, outside the 2024 promotion.
Review triggers
- The MPC custody threshold grows beyond two parties to a broader set of named signers, or an independent third-party verifier is added to the release process
- The current redemption mechanism, timing and any size limits for ordinary bridge transactions are independently confirmed and shown to work at the proposed size
- An independent, recurring proof-of-reserves attestation for MBTC and other assets bridged through Seal is published
- Twelve months in a row with no depeg, custody or bridge-release incident after the threshold and redemption terms are confirmed
Facts
- Verdict
- Not approved
- Type
- Other
- Chains examined
- Ethereum
- Reviewed
- Last confirmed