Research summary
The research assessment is adverse because Merlin's Seal has a smaller approval set than every comparable Bitcoin wrapper this registry has already rejected. Merlin's Seal is the BTC-locking bridge for Merlin Chain, a Bitcoin Layer 2. It uses MPC custody co-managed by Cobo and Merlin Chain, and both parties must sign to release funds. That two-party gate is smaller than WBTC's 2-of-3 multisig or Function FBTC's three-party Security Council, which this registry rejected for their own custody-concentration risks. Primary sources did not confirm current redemption mechanics for ordinary, non-promotional bridge transactions.
Observable review triggers
- 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
- Type
- Other
- Chains examined
- Ethereum
- Reviewed
- Last confirmed