The memo
REJECTED ON A THINNER APPROVAL SET THAN EVERY COMPARABLE BITCOIN WRAPPER ALREADY REJECTED IN THIS REGISTRY. Merlin's Seal is the BTC-locking bridge for Merlin Chain, a Bitcoin Layer 2, using MPC custody co-managed by Cobo and Merlin Chain that requires both parties' signatures to release funds. That two-party gate is smaller than WBTC's 2-of-3 multisig or Function FBTC's three-party Security Council, both already rejected in this registry for their own custody-concentration reasons, and current redemption mechanics for ordinary, non-promotional bridge transactions could not be confirmed from primary sources.
What would reopen the file
- The MPC custody threshold expands beyond a two-party gate to a broader, named signer set, or an independent third-party verifier is added to the release process
- Current redemption mechanism, timing, and any size limits for ordinary bridge transactions are independently confirmed and demonstrated at proposed size
- An independent, recurring proof-of-reserves attestation for MBTC and other Seal-bridged assets is published
- Twelve consecutive months with no depeg, custody, or bridge-release incident following threshold and redemption confirmation
Facts on file
- Verdict
- Rejected
- Exposure
- other
- Chains examined
- Ethereum
- Memo version
- v1
- Reviewed
- Next review