Research summary
Our research assessment is adverse. FBTC, Function Network’s Bitcoin-backed omnichain asset, is unrelated to Fidelity’s spot Bitcoin ETF that trades under the same ticker. It follows the same custodial structure as WBTC and BTCB, both already rejected in this registry: BTC held by named custodians, minted 1:1 by KYB-gated Merchants, with retail exit only through secondary markets. A three-member Security Council of Mantle, Antalpha Prime, and Cobo oversees custody through threshold-signature and MPC techniques. This separates roles more clearly than WBTC does, but this review could not confirm the exact approval threshold among the three parties, and found no independent, third-party proof-of-reserves attestation. The absence of a named scandal does not offset an unconfirmed custody threshold and no independent reserve verification. This is a standing disclosure gap, not a temporary evidence gap.
Observable review triggers
- An independent, third-party proof-of-reserves attestation for FBTC is published on a recurring basis
- The exact Security Council or TSS approval threshold is publicly confirmed and shown to require genuine multi-party consensus with no single-party override path
- A permissionless or clearly disclosed, non-discriminatory redemption path is demonstrated for non-institutional holders
- Twelve consecutive months with no custody, freeze, or minting-irregularity incident following threshold confirmation
Facts on file
- Verdict
- Rejected
- Type
- Other
- Chains examined
- Ethereum
- Instruments
- FBTC
- Reviewed
- Last confirmed