The WBTC Network issues Wrapped Bitcoin (WBTC), which is an Ethereum and blockchain-based tokenized version of Bitcoin. This allows Bitcoin users to add liquidity to DeFi ecosystems. The WBTC Network backs each WBTC with a corresponding amount of Bitcoin stored securely in multi-signature custody. The decentralized autonomous organization (DAO) provides governance oversight and ensures that the WBTC Network's operation is transparent and verifiable due to the involvement of merchants and custodians.
The Wrapped Tokens White Paper outlines a general framework for creating asset-backed tokens such as WBTC using federated governance.
Wrapped Bitcoin is launched as an ERC20 token on the Ethereum blockchain and is backed 1:1 by Bitcoin. The introduction of Wrapped Bitcoin creates a bridge allowing Bitcoin liquidity to be added to DeFi.
An independent audit is completed by ChainSecurity regarding both the WBTC smart contract functionality and the custody model used by the WBTC Network.
WBTC Network expands availability to multiple additional blockchain networks including but not limited to BNB Chain.
Governance of the WBTC Network is transferred to a multi-signature DAO ensuring that the WBTC Network will operate in a decentralized manner.
Multi-chain deployment (Ethereum, Solana, BNB Chain, TRON, Base) with Bitcoin custody layer
N/A (Cryptocurrency protocol)
Based on official whitepaper, ChainSecurity audit, and protocol documentation
| Service | Cost | Details | Source |
|---|---|---|---|
| Minting WBTC | Blockchain gas fees + merchant spread | No fixed fees; costs vary by Ethereum network congestion and merchant | wbtc.network documentation |
| Unwrapping WBTC to BTC | Blockchain gas fees + custodian processing | Burn transaction fees on Ethereum; merchant/custodian may charge small spread | — |
| Holding WBTC | $0 | No storage or custody fees for token holders | — |
| DeFi Usage | Protocol-specific fees | Lending, borrowing, trading fees set by individual DeFi platforms (Uniswap, Aave, etc.) | — |
| Feature | WBTC | renBTC | tBTC | sBTC |
|---|---|---|---|---|
| Core Functionality | ERC-20 BTC wrapper | ERC-20 BTC wrapper | Decentralized BTC wrapper | Stacks BTC wrapper |
| Custodial Model | Centralized (BitGo) | Centralized (RenVM) | Fully decentralized | Partially decentralized |
| Backing Ratio | 1:1 BTC reserves | 1:1 BTC reserves | 1:1 BTC reserves | 1:1 BTC reserves |
| Supported Chains | Ethereum (multi-chain expanding) | Ethereum + others | Ethereum | Stacks + EVM |
| KYC/AML Required | Yes (for minting) | No | No | Varies |
| Total Value Locked | $10B+ | $500M+ | $1B+ | $2B+ |
| Starting Cost | Gas fees only | Gas fees only | Gas fees only | Gas fees only |
| Free Tier | ||||
| API Availability | Yes | Yes | Yes | Yes |
| Security Model | BitGo custody + audits | RenVM MPC | Threshold signature | Stacks PoX |
WBTC has higher TVL & Liquidity than renBTC because of its first mover advantage, merchant network and is compliant for institutional clients who need it; renBTC is trust-less, no KYC required
WBTC for DeFi Yield Farming; renBTC for Privacy-focused users
tBTC is a decentralized version of wrapping, without custodians but has lower liquidity and more complicated UX; WBTC has dominance in DeFi Pools and tBTC is appealing to those who value decentralization above all else
WBTC for DeFi Yield Farming; tBTC for Trustless Bitcoin holders
sBTC is focused on the Bitcoin L2 ecosystem; WBTC is focused on Ethereum DeFi; sBTC allows smart contracts to be created directly on top of Bitcoin security, WBTC utilizes the mature DeFi ecosystem of Ethereum
WBTC for DeFi on Ethereum; sBTC for Native Bitcoin Applications
Local Exchange backed wrapper vs Global WBTC DAO governed wrapper; WBTC has larger merchant base and greater transparency, HBTC is mostly utilized within Asia for users
WBTC for Global DeFi; HBTC for Users of Huobi Ecosystem
Wbtc is an ERC-20 token on the Ethereum blockchain that is backed 1:1 by bitcoin held in custody. Users deposit their btc with merchants who work closely with custodians such as BitGo to mint equivalent wbtc tokens. This enables users to use their bitcoin in Ethereum based DeFi applications and still have exposure to bitcoin.
Yes, each wbtc token is backed by one (1) btc token that is being held in custody by the custodians of wbtc. Quarterly third party proof-of-reserves audits are conducted to verify the backing. All mint/burn transactions are publicly verifiable on chain.
Wbtc can be requested from authorized merchants via their platforms. First, complete your kyc/aml requirements, then send your btc to the merchant. Finally, receive your minted wbtc tokens in your Ethereum wallet. Some common merchants include centralized exchanges and DeFi platforms.
Send your wbtc to the merchant for burning. The merchant will coordinate with the Custodian to release an equivalent amount of btc after the burn transaction has been confirmed. The timeframe for this process varies depending on the merchant's service timelines.
YES! WBTC has been implemented on several different blockchains such as Binance Smart Chain (BNB), Solana, TRON, and Base. The cross-chain bridge allows for a seamless movement of Bitcoin liquidity between these ecosystems and maintains the 1:1 peg to bitcoin.
There are three main risks involved when utilizing WBTC: (i) custodial risk (your bitcoin being stored at an institution); (ii) smart contract risk; and (iii) congestion on the Ethereum Network. The risk of custodial risk is mitigated through multi-sig DAO governance, regular audits and proof-of-reserves. As always please do your own research (DYOR) prior to using WBTC.
WBTC utilizes the custodial model and is backed by regulated institutions such as BitGo. RenBTC/TBTC utilize a non-custodial threshold signature scheme. WBTC has prioritized institutional compliance and liquidity over non-institutional users.
Yes, you can deposit WBTC into DeFi protocols that allow lending and generate interest such as Aave, Compound, or Yearn. WBTC currently offers the most liquid (in terms of BTC) DeFi asset, offering competitive rates to other DeFi protocols.
WBTC is the industry leader in wrapped Bitcoin solutions, with the highest amount of wrapped BTC liquidity ($10B+) and the highest level of institutional support. While its custodial model requires that users provide identification and may limit the ability of users to remain anonymous, it also ensures regulatory compliance and unlocks the potential of Ethereum DeFi for the billions of bitcoin holders who have previously had no way to participate.
WBTC is the gold standard for institutional grade Bitcoin DeFi access and provides unparalleled levels of both liquidity and security.
With a market capitalization of over $10B, Wrapped Bitcoin Token (WBTC) has become the de facto standard in the world of wrapped Bitcoin solutions due to its multi-chain presence. The custodial model provided by BitGo is a secure, compliant and institutional-grade solution for institutions. The transparent proof-of-reserves and the Decentralized Autonomous Organization (DAO) governance structure are further mechanisms that ensure accountability. The largest liquidity source for DeFi applications utilizing wrapped BTC is WBTC, which has demonstrated an impressive five plus-year track record.
Excellent - comprehensive technical documentation, audited contracts, public proof-of-reserves, and extensive third-party analysis available. Protocol details fully transparent via blockchain explorers.
Governed by the Wrapped Bitcoin DAO (Decentralized Autonomous Organization), which utilizes a multi-signature threshold. Proposals for protocol upgrades submitted to the DAO will be voted upon by merchants, custodians, and community representatives. All governance proposals related to the DAO will be visible on-chain and viewable to all parties.
We have deployed on Ethereum, BNB Chain, Solana, TRON, Arbitrum, Optimism, Base, and more. Our cross-chain bridges provide a 1:1 peg throughout all of our different ecosystems. We are the largest omni-chain solution providing BTC liquidity across all chains.
BitGo is our main custodian, which has completed an SOC2 audit. Our protocol has also been supported by the top CEX's like Binance and Coinbase, as well as leading DEX's. We are the preferred wrapped BTC for many regulated DeFi protocols such as Aave and Compound.
We launched in December 2018. Throughout multiple market cycles we maintained a 1:1 peg on the price of BTC. We grew from a market capitalization of $10 million to over $10 billion. We survived the 2022 crypto winter with fewer than 5 depeg events.
Every WBTC is backed by its own equal amount of Bitcoin held in reserve by the custodian, along with a proof of reserves.
| Mechanism | Description | Custody Model | Primary Use Case |
|---|---|---|---|
| Lock & Mint | Bitcoin locked with custodian (BitGo), equivalent WBTC minted as ERC-20 on Ethereum | Centralized Custodian (BitGo) | Bitcoin DeFi participation on Ethereum |
| Merchant-Mediated Wrapping | Merchants handle user requests, verify KYC/AML, custodian locks BTC and mints WBTC | Custodian/Smart Contract | Retail access via exchanges and DEXes |
| Burn & Release | WBTC burned on Ethereum, equivalent BTC released from custodian reserve | Centralized Custodian | Unwrapping to native Bitcoin |
All WBTC is fully compatible with all smart contracts on the Ethereum blockchain, including DeFi protocols and DEXes.
All WBTC users can see in real-time their BTC collateral being used as collateral in lending, borrowing, yield farming, and trading on DeFi platforms on the Ethereum blockchain.
All WBTC users have access to view in real time their BTC collateral being used as collateral on lending, borrowing, yield farming, and trading on DeFi platforms on the Ethereum blockchain at wbtc.network.
WBTC users can seamlessly lend, borrow, trade, and participate in yield farming on the Ethereum blockchain without ever having to sell their BTC.
Our custodian, BitGo, provides a 1:1 collateral ratio for every WBTC user and maintains institutional grade custody.
| Architecture Type | Trust Model | Custodian Control | Examples |
|---|---|---|---|
| Custodial Bridge | Trusted custodian entity | BitGo (single custodian) | WBTC protocol |
| Merchant-Mediated | Verified merchants + custodian | BitGo custodial reserve | WBTC merchant network |
Any bitcoin holder can use WBTC as collateral on the Ethereum lending protocols Aave and Compound.
WBTC users can provide liquidity to DEXes such as Uniswap to earn trading fees and other yield opportunities.
WBTC users can trade WBTC against ERC-20 tokens on both DEXes and aggregators on the Ethereum blockchain.
WBTC users can purchase perpetuals, options, and structured products on the Ethereum blockchain using WBTC.
WBTC users can earn yield on their bitcoin holdings using DeFi protocols on the Ethereum blockchain without ever having to sell their BTC.
